WASHINGTON, March 5, 2002 – “Today’s announcement is a clear win for steel. President Bush sat down, weighed the issue and came up with an approach that will give breathing space to the domestic steel workers and the industry, which has been hollowed out by unfair trade practices. The implementation of these tariffs is a very positive development for the industry and will put it back on track.

“We called on the President to institute a strong remedy under Section 201 and he did just that. This decision shows that he listened carefully to the concerns of those who lobbied on behalf of relief, including the workers. This is the strongest steel policy in memory.

“Enacting tariffs of up to 30 percent for most steel products provides help for those hardest hit by the international trading climate and unfair trade practices. This sends a clear message to the world that with this administration we have a stronger trade policy and are not going to tolerate dumping in the future. In the long run, I believe President Bush has the potential to save the industry and put it on a path to competitiveness and profitability in the new century. We will monitor carefully the effect this policy has on imports and steel prices.”

Background

Section 201 of the Trade Act of 1974 was established to address cases where domestic industries have been injured or are threatened with injury by import surges.  This mechanism is embraced in the WTO Safeguards Agreement.

Once petitioned by the impacted industry, Congressional committee, or segment of the administration, the International Trade Commission determines whether a product is being imported at levels that have or could harm the domestic industry. Section 201 does not require a finding of unfair trade practice, but rather, depends only on a finding that increased imports are damaging the industry.

In this case, the International Trade Commission determined damage occurred and made recommendations for tariffs to the president. The president makes the final decision whether to provide relief and the nature of the relief, meaning granting relief is completely discretionary.