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Precision Metalforming Association Calls on U.S. International Trade Commission to Revoke Corrosion Resistant Steel Duties

Posted on: Tuesday, 17 October 2006, 15:00 CDT

WASHINGTON, Oct. 17 /PRNewswire/ -- Precision Metalforming Association (PMA) President William E. Gaskin today strongly urged the U.S. International Trade Commission to revoke duties on corrosion resistant steel because "protecting a healthy steel industry that no longer needs protection at the expense of steel consumers makes no economic sense."

The ITC is holding a hearing today (October 17) as part of a "sunset review" to determine whether to terminate anti-dumping and countervailing duties (AD/CVD) on corrosion resistant steel, a coated steel product used extensively in the manufacturing of automobiles and auto parts, in the construction industry, and in many other finished products. ITC Commissioners are expected to take a final vote on the case in December 2006.

"If manufacturers are going to have a future in this country, the U.S. government needs to stop protecting industries that don't need protection anymore -- and, at a minimum, stop hurting manufacturers that are struggling to stay in business -- by putting an end to senseless trade restrictions," said Gaskin.

"PMA members face global competition everyday. Steel is a major input for many of our members, accounting for up to 70 percent of the cost of their products. The duties on corrosion resistant steel are contributing to substantially higher costs for steel and contribute to the supply disruptions that the U.S. market has experienced over the past few years. We simply cannot compete when our members are paying higher overall costs for steel compared to our global competitors," said Gaskin.

"The ITC will revoke these duties if it finds revocation won't hurt the steel industry. The industry's own executives boast of strong profits, a healthy long-term outlook and strong demand. These duties have been in place since 1993, and the U.S. steel industry has changed completely in the past 13 years. Today they are highly competitive, cost-efficient and, as a result, highly profitable. It is obvious that revocation of the duties will not hurt steel producers. The steel industry no longer needs protection and these duties should be lifted," said Gaskin.

"We also welcome the automotive companies into this public debate," continued Gaskin. "For years, PMA members have been on the front lines of this public policy debate, carrying the flag on behalf of steel consumers in the United States to demand the end of unnecessary protection so that U.S. manufacturers can have access to steel from both domestic and international sources."

PMA supports the American Manufacturing Competitiveness Act (H.R. 4217) sponsored by Rep. Joe Knollenberg (R-MI), to provide U.S. industrial consumers with full "interested party" standing throughout the AD/CVD process and require the ITC to use an economic impact test ensuring that trade case decisions do not result in greater harm than benefit to American manufacturers.

The Precision Metalforming Association (PMA) is the full-service trade association representing the $41-billion metalforming industry of North America -- the industry that creates precision metal products using stamping, fabricating and other value-added processes. Its nearly 1,200 member companies include metal stampers, hot-rolled fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry. Members are located in 30 countries, with the majority found in North America (in 41 states of the U.S.) as well as Canada and Mexico.

Precision Metalforming Association

CONTACT: George Felcyn, +1-202-466-6210, George.Felcyn@pbnco.com, forPrecision Metalforming Association

Web site: http://www.metalformingadvocate.org/

Source: PRNewswire

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