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A{IB}
No Steel Industry
What would Suffer?
Homeland Security
Global Environment
importing over 26% of global steel imports between 1997-2001, followed by the EU at 16%. Throughout the 20th century, 85% of non-US steel was tied to government ownership or control, cartels, or subsidies. WTO rules allow countries to impose temporary safeguards when increased imports have caused substantial serious injury to competing domestic industries.
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0 Mittal Posco Nippon JFE Arcelor Thyssen Krupp Nucor Baosteel Companhia Siderurgica Nacional (CSN) US Steel
nearly 47,000 steel and iron jobs had vanished. President Bush and Vice President Cheney boxed themselves in politically during the 2000 campaign by pledging to come to the aid of steelworkers. Those promises helped Bush beat Al Gore in West Virginia.
its plan to correct distortions in the world steel market produced by government interventions.
On March 5, 2002, the US imposed "safeguard"
tariffs of up to 30% on about a third of the steel imported into the U.S. In exchange for three years of protection, the steel industry was required to commit to restructuring that would cut costs and shed excess capacity.
Market Problems:
Steel prices are still archaically determined by product
weight; quality and value are not reflected in the price, merely tonnage" steel market analyst. Steel pricing is characterized by a lack of public transparency. The United Steel Workers of America mobilizes lobbying campaigns and blames each Administration for industryrelated problems. The Bush Administration, for example, has steadfastly refused to help provide relief for the more than 200,000 Steelworker retirees, surviving spouses and dependents whose health care benefits have been wiped out by unfair trade, bankruptcy and liquidation
EU perspective
The EU warned the US that it would start
imposing up to 2.2 Billions worth of counter tariffs on US imports. On March 25,2002, The EU imposed restrictive tariffs quotas based on the average of the annual level of steel imports in the years 1999 ,2000, 2001,plus 10% thereof. The EU s proposed sanctions targeted regions that the Bush Administration viewed as crucial to reelection campaign in 2004.
of the US action under the dispute settlement mechanism. reserve the right to appeal the U.S steel safeguards to the WTO. were threatening to the integrity of the World Trade Organization
Panel Decision
The panel established on June 3,2002 had
to examine the consistency of the safeguards measures. Japan and Korea brought also their complaints to the panel based on Art.9.1. China, Norway, Switzerland on June 24, 2002. On July 8, New Zealand, then Brazil on July 29, 2002
measures applied on imports of certain steels based on Articles 2,3,4,5,7,8,9,&12 of the agreement on safeguards and Art.I,II,X,XIII,& XIX of the GATT 1994.
On July 11,2003 the Panel issued to the
members of the WTO eight Panel Reports in the form of one document.
The US failed to show a causal link existing between any increased imports and serious damage to domestic producers. (Article 4.2(b). The US failed to comply with the requirement of
parallelism between the products for which the conditions for safeguards measures had been established and the products which were subjected to the safeguard measure.
United States to bring all the safeguards measures into conformity with its obligations under the Agreement on Safeguards and the GATT 1994
concerning the complaints of China, the EU, New Zealand, Norway and Switzerland, that the application of all safeguard measures was inconsistent with the requirement of Article XIX:1(a) of the GATT 1994. It upheld the Panels conclusions that the application of the safeguards measures on imports on steels is inconsistent with the requirements of Articles 2.1,3.1,4.2(b) of the agreement on Safeguards. It found that the U.S. did not substantiate the claim raised under the Article 11 of the DSU. It recommended that the DSB requested the U.S. to bring its safeguard measures found inconsistent into conformity with its obligations under those Agreements.
increased US productivity and lowered production costs, o PBGC is now in a position to pay 90% of the benefits of bankrupt companies US Steel industry now poised to benefit from a growing US and global economy. Continue to promote a level playing field for American steel producers and workers by closely monitoring import data
flat-rolled sector