TRADE LAWS – CRITICAL IMPORTANCE TO SSINA MEMBER COMPANIES A Presentation to the Steel Manufacturers AssociationMay 1, 2013Washington, DC Skip Hartquist Counsel to SSINA Kelley Drye & Warren LLP
100th Anniversary of the creation of stainless steel. • Over 50 years of SSINA. • Corrosion resistance setsstainless apart from other forms of steel. • Chromium is a key ingredient, and was used over 5,000 years to strengthen weapons and prevent corrosion.
TRADE LAWS – CRITICAL TO THE SURVIVAL OF THE SPECIALTY STEEL INDUSTRY IN THE UNITED STATES • I have had the honor of representing this industry for nearly 40 years, and have worked on every trade case since 1976. Here are some highlights: • 1973 – First antidumping cases, against French stainless wire rods and Swedish stainless steel plates. • 1975 - “Escape-clause” case filed with the United Steelworkers of America seeking relief from a flood of imports threatening the industry and steelworker jobs. The case was successful, leading to quotas on flat-rolled and long products, and tool steels. Relief lasted until 1980.
1981 - “Surge mechanism” established to restrict dumping and other unfair import practices. • 1981 - With the “surge mechanism” proving to be ineffective, SSINA and the USW petitioned for relief against massive foreign government subsidies under Section 301.
1982 • CVD case against Spain on bar and rod. • AD case against Germany on sheet & strip. • AD case against France on sheet & strip. • CVD case against Brazil on bar & rod. • AD case against Germany, CVD case against Brazil, both on tool steel. • CVD case against the U.K. on stainless flat rolled. • President Reagan initiated an expedited “201” case on stainless steels and tool steels as well as multilateral and/or bilateral negotiations.
1983 • SSINA companies won the AD/CVD cases. • President Reagan announced his findings and recommendations in the 201 case – four years of tariffs on flat-rolled stainless steel, and four years of quotas on bar, rod and tool steel. • 1984 • The President announced his intent to negotiate voluntary restraint agreements (VRAs) on steel exports to the U.S. • 1984 • VRA reached between the U.S. and the E.C.
1987 • SSINA and USW requests an extension of import restraint program. • President extends program to 1989. • 1989 - 92 • VRAs continue in effect • 1993-95 • New AD cases filed on bar, wire rod, and grain-oriented electrical steel. All were successful. • 1998-2002 • New AD/CVD cases filed on plate, sheet & strip, angles, and bar. Again, all were successful. • 2002-2013 • Sunset reviews.
WHAT HISTORY TEACHES US • Constant monitoring is crucial. • Strong trade laws, and vigorous enforcement of the remedies, are vital to the survival of the industry. • The U.S. market is so attractive that foreign producers are willing to violate U.S. trade laws and WTO rules to sell in our market. If you let your guard down, they will swallow you up.
CURRENT AND FUTURE CHALLENGES • Import surges. With the US market showing improvement, and Europe sluggish and China softening, we look enticing to exporters. • Overcapacity. China is the most egregious example, but overcapacity is a global problem. Witness ThyssenKrupp’s disaster in Alabama. • Subsidies on the rise again. • State-owned enterprises. How to define an SOE. What trade policies should apply to SOEs. • Continued attempts to weaken US trade laws. WTO dispute settlement process issues. OUR WORK IS CUT OUT FOR US