The United States Trade Representative (USTR) called for comments on the subject of the Global Overcapacity of Steel and its effects on US markets.  The AWPA submitted comments to the USTR on March 29, and on April 12, Kimberly Korbel, AWPA’s Executive Director, will testify at the public hearing convened by the USTR.

There were 113 submissions of written comments and/or requests to testify.  AWPA’s written comments and those of other industry related organizations and companies are posted on the AWPA website.

AWPA’s comments focus on the effects of overcapacity on downstream steel manufacturers in the US, and the particular problems of China’s exports of wire and wire products.  AWPA and other organizations are recommending the following:

• Negotiate meaningful and enforceable reductions in excess capacity in China and other countries and restrict global expansion of steel capacity
• Negotiate the prohibition of government subsidies and other market distorting policies in the steel industry
• Limit or prohibit Export Bank lending for steel capacity expansion and steel related projects
• Eliminate the border tax schemes which promote exports of finished products while discouraging exports of raw materials and other inputs
• Strict enforcement of the trade laws and prevention of the evasion of AD/CVD orders
• China must continue to be treated as a non-market economy country
• Address currency manipulation
• Consider the impact of any remedy on the whole supply chain, as tariffs or other remedies on imported steel would have unintended consequences on the US manufacturers that use steel as raw material in their production