RI, China prevail in U.S steel case

RI, China prevail in U.S steel case

WASHINGTON (Reuters): Dealing a blow to American steel makers and workers, the U.S. International Trade Commission (ITC) blocked the government on Friday from imposing punitive duties on steel imports from China, Indonesia, Slovakia and Taiwan.

The federal commission ruled 5-1 that cold-rolled steel imports from the four countries were not a threat to the U.S. steel industry.

The ruling means the United States will not impose duties ranging from 14.97 percent to 163.89 percent on cold-rolled steel shipments, used in products ranging from automobiles to household appliances.

The decision outraged U.S. steel producers, including Bethlehem Steel Corp., U.S. Steel Group, National Steel Corp. and Steel Dynamics Inc. as well as United Steelworkers of America.

They have accused foreign producers of dumping steel in the United States at below fair market value, and have increased pressure on the White House to crack down on cheap imports ahead of the November presidential election. Vice President Al Gore, the presumptive Democratic presidential nominee, is counting on labor's support at the polls.

"Today's ruling by the ITC tells American steelworkers, their families and our steel industry that the Commission cannot be counted on to enforce U.S. trade laws against dumping, despite overwhelming evidence of illegal cold-rolled imports," said United Steelworkers President George Becker.

He called the ruling an "injustice" and warned that it would cost more than 21,000 U.S. steel workers their jobs.

But Friday's decision came as little surprise. Earlier this year, the commission tossed out duties against cold-rolled steel imports from Argentina, Brazil, Japan, Russia, South Africa, Thailand, Turkey and Venezuela.

U.S. trade officials have grown increasingly wary of industry complaints as steel imports eased. Washington is also worried about a backlash from major trading partners, who have accused the United States of flouting World Trade Organization rules.

Earlier this month, foreign steel makers lashed out at their American rivals, releasing a study alleging that protectionist U.S. trade policies have cost consumers up to $150 billion over the last 30 years.

Friday's ruling was a major victory for steel makers in Slovakia, which would have faced 109.21 percent duties. Slovakia's second-largest employer, VSZ, had been threatened with duties of 163.89 percent.

Likewise, the ruling was a victory for Indonesia's PT Krakatau Steel, which would have faced duties of 83.79 percent. Other producers in Indonesia were targeted at 43.90 percent.

Cold-rolled steel makers in China had also faced punitive duties, averaging 23.72 percent, while producers in Taiwan, including China Steel Corp., faced 14.97 percent margins.