Steel Producers Call for NAFTA Common Principles

John Wolz

Editor”s Note: Jim Witucki, sales manager for Nucor Fasteners pointed out that much of the steel industry news is related to sheet steel “which has little if any correlation to the wire/rod used by many fastener manufacturers” and therefore can lead to misinterpretation.
Witucki shared the following information from five steel organizations: The American Iron and Steel Institute, Specialty Steel Industry of North America, Steel Manufacturers Association, Mexican Steel Producers Association and Canadian Steel Producers Association.

“World-class steel producers in the NAFTA region continue to support new initiatives to liberalize trade as long as essential fair trade rules are not weakened in any way,” five North American steelmakers declared in a document prepared for the 6th World Trade Organization Ministerial Conference in Hong Kong.
“We speak with one North American voice on WTO-related issues” the steel producers wrote to government officials. They urged the U.S., Canadian and Mexican governments to commit to international trade policies affecting our sector that:
” Defend, preserve and enhance national and international disciplines against dumped, subsidized and disruptive imports.
” Counter subsidies and state support of capacity in the global steel industry.
” Achieve real market access for steel and related products;
” Address other WTO issues affecting steel and North American manufacturers. Key issues here are the need to ensure that (1) China abides fully by WTO commitments, (2) Russia, Ukraine and other new entrants accede to the WTO only on commercially viable terms and (3) new tools are developed if needed to counter currency manipulation by China and other governments.

North America”s steel producers “support a process whereby NAFTA governments, in consultation with the NAFTA steel industry, develop coordinated approaches and united positions where possible, with the common objectives to:
” Ensure no weakening of existing trade laws and disciplines;
” Obtain strengthened disciplines.
” Promote market-based commercial behavior.
” Eliminate trade and market-distorting practices.

“We believe it is essential that NAFTA governments speak more effectively with one North American voice in multilateral settings and that you work more closely together in efforts to prevent trade law weakening anywhere in the NAFTA region,” according to the letter. “At meetings of the intergovernmental “North American Steel Trade Committee,” we have documented how the steel industry of North America has undergone an historic transformation. The “new” and “strategic” NAFTA steel industry can compete with anyone on a fair and level playing field. We cannot compete against governments. ”
The document states that at “the highest level of government, the three NAFTA countries have recognized, through the new Security & Prosperity Partnership (SPP), that steel is a “strategic” industry.
However the world steel market “has been subjected to renewed inappropriate interventions by offshore governments,” including large subsidies giving WTO negotiations on dumping, subsidies, countervailing measures and other rules “have taken on added significance for North America”s steel producers, workers, suppliers and communities.”
“In recent years, the steel industry of North America has consolidated, restructured, invested, built a new business model and undergone an historic transformation. The “new” NAFTA steel industry can compete with anyone on a fair and level playing field,” the document declared.
Editor”s Note: Jim Witucki can be contacted at Jim.Witucki@nucor-fastener.com \ �2006 FastenerNews.com