North America’s six largest automakers, DaimlerChrysler, Ford, General Motors, Honda, Nissan and Toyota, have called on the US International Trade Commission (ITC) to terminate anti-dumping and countervailing duties on ‘corrosion resistant steel’.
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“This marks the first time that these six companies have united on a trade issue,” said General Motors chief economist Mustafa Mohatarem. “We have joined together because further protection for the steel industry is simply unjustified. Continuing these outdated duties hurts American manufacturing competitiveness and US jobs.”
“A great deal has changed in the steel industry since the duties were put in place 13 years ago,” added Toyota group vice president Josephine Cooper. “There is no longer an economic basis for keeping these duties. The steel industry benefits from unnecessary protection while the duties hurt a much wider sector of the US economy.”
The companies said they buy the majority of the steel used in their US operations from US steel mils, but that they must maintain the ability to obtain key materials for their vehicle assembly plants dependably and at globally competitive prices.
The ITC is required to conduct a “sunset review” on antidumping and countervailing duties every five years. The duties will be lifted unless the ITC finds that the steel industry is likely to face material injury as a result. The duties on corrosion resistant steel have been in place since 1993 on imports from six countries: Australia, Canada, France, Germany, Japan and Korea.
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By GlobalData“With record profits, high prices and industry consolidation, the domestic steel industry is enjoying unprecedented prosperity that its own executives have publicly stated is sustainable for the long term,” said Mark McConnell, counsel to the six auto manufacturers.
“Strong global demand for steel will render an influx of imports very unlikely in the event that the ITC revokes the orders. That is why these orders should be terminated as the law intended.”
