United States Trade Representative Ron Kirk announced earlier this week that the United States signed agreements with the European Union (EU) and Japan that will bring an end to a 9-year dispute with these trading partners over zeroing. Zeroing is a preferred methodology used to calculate margins in certain types of dumping transactions. According to Tom Danjczek, President of the Steel Manufacturers Association, both the SMA and the Administration were disappointed that according to WTO, alternate methods will now be used to administer results.
According to the USTR’s office, however, these two agreements will head off the risk of the potential for hundreds of millions of dollars of lost exports due to trade retaliation coming from the EU and Japan, resulting in jobs lost for U.S. workers and financial losses for U.S. farms and businesses.
Responses from the steel community were both supportive and cautious.
Leo Gerard, USW International President said, “USW members have been a petitioner or supporter of more than a third of the antidumping cases brought against imports during the last twenty years. Strong trade remedy laws are important for stopping the destructive practices of many of our trading partners who dump products in our market that harm our union members and domestic producers.”
American Iron and Steel Institute (AISI) President and CEO, Thomas Gibson, anticipated the need for either clarification of WTO policies or further agreements with other US trading partners.
“AISI condemns the several rulings by the World Trade Organization (WTO) against zeroing…USTR Ron Kirk has emphasized that the Administration will continue to work to obtain a clarification that the WTO rules permit zeroing, which is critical to making our trade laws work. We strongly support this position by the Administration, and will continue to work with USTR and the Commerce Department to correct these errant decisions by the WTO.”
Source: United States Trade Representative, United Steelworkers, American Iron & Steel Institute.
