Europe Responds to U.S. Steel Tariffs

Sarah Beaumont

Editor�s Note: The following is presented by F&F Digital, the European Internet fastener e-zine, as part of a news column exchange with FIN.

By Sarah Elizabeth Beaumont
Editor, F&F Digital
Following the March announcement of temporary United States tariffs of up to 30% on different kinds of steel, some $8 billion of imports from Europe, Japan, South Korea and other countries expect to be affected, equating to about 10% of the world market. \
The policy is designed to help America�s steel industry, which is finding difficulty in competing with foreign suppliers or with America�s own more productive mini-mills.
In response, joint WTO dispute settlement consultations have recently called for immediate termination of the U.S. protectionist action on steel.
Council regulation will be establishing additional customs duties on imports of certain products originating in the U.S. A number of measures have been put forward by the EU to rebalance the effects of the U.S. action, and included in these is a list of products originating in the U.S. that will attract additional customs duties.
Among these are a number of fastener products falling under the following CN codes: 73181499 self-tapping screws, etc. of iron or steel other than stainless steel; 73181510 screws and nuts of iron or steel, threaded, turned from bars, rods, etc. not exceeding 6mm; 73181559 slotted and recessed screws other than stainless steel; 73181590 bolts other than hexagonal, not stainless; and 73181699 other nuts, not stainless steel, exceeding 12mm inside diameter.
These products are set to attract 30% additional duty until the U.S. measures are withdrawn. There has been general criticism against the action, which is due to be approved on June 18 by Germany, Sweden, Holland and Luxembourg.

� British manufacturers are looking forward to a recovery. After the most serious fall in output for more than 10 years, business surveys are indicating that better times are ahead. Following a dramatic decline in production on a par with other major economies, the Purchasing Managers� index in February recorded a level indicating that the manufacturing sector is now marginally expanding for the first time in a year.
What has made the situation in British manufacturing so bad is the fact that the recent decline � a drop by a quarter since December 2000 – comes on the back of several years of negligible growth in comparison to Germany or America.
Though not reflected in the growth of the British economy as a whole, manufacturing production last year was only 2.7% higher than in 1995.
For every manufacturing facility downsizing or facing closure, the knock-on effect in the fastener industry must be acknowledged.
One recent blow to the UK trade has been the collapse of the Garton Engineering Group following failure to reach an agreement over future funding with its bank, HSBC. The reason for the shortfall is said to be that trading during the six months ending December 31, 2001, was significantly worse than the Garton board�s expectations. its businesses, including the washer and profiling company Charles (Wednesbury), will keep trading in the hope that an investor can be found.

� Optimism in Spain � Spanish Chamber of Commerce president Jose Manuel Fernandez Norniella issued survey results indicating economic optimism amongst Spanish managers. The president commented that Spain had maintained positive growth within the European Union and that everything was pointing to a recovery and quick acceleration of the economy in the second semester of the year.

� In 2001, the Germany-based Fischer Group achieved a total turnover of 403 million Euros, or 4.8%, in its three divisions � fixing, automotive and construction kit.
Since the Fischer merger with Upat GmbH & Co in 1993, the Group continues to produce two labels of overlapping products, and the company recently realigned to define the spheres of responsibility within the two labels.

� Many leading names in the fastener and fixing industry will be demonstrating their products and services at Fastener & Fixing Expo on September 25-26, 2002 in Brussels. For information contact F&F Expo, P.O. Box 22894, London NW9 6ZE, UK Tel: (44) 208 905 9511 Fax: (44) 208 905 9512 E-mail: sarah@fastfixeuro.com Web: fastfixeuro.com �2002 FastenerNews.com