Ian
> -----Original Message-----
> From: owner-lbo-talk at lists.panix.com
> [mailto:owner-lbo-talk at lists.panix.com]On Behalf Of Tom Lehman
> Sent: Saturday, February 12, 2000 5:53 AM
> To: lbo-talk at lists.panix.com
> Subject: Re: Welcome to the New Protectionism
>
>
> Ian--I wouldn't make too much out of this ruling. Both the
> wire/rod and line
> pipe(electric resistance weld) businesses have been on the ropes
> for years. I
> don't know if anyone in big steel is even operating an erw mill
> anymore? Most
> erw mills that I know of having existed have been scrapped or
> sold to overseas
> steelmakers.
>
> The wire/rod ruling is welcome. Although only a small part of
> the total steel
> market, this product line is highly efficent and modern and has
> been seriously
> injured by imports. Some of my friends have visited Georgetown
> steel in South
> Carolina which is a major player in this business. The Steelworkers at
> Georgetown are featured in the new issue of Steelabor & their
> efforts to save
> Steelworker jobs are appreciated.
>
> Tom Lehman
>
> Lisa & Ian Murray wrote:
>
> > February 11, 2000
> >
> > Clinton Slaps Tariffs on Steel Imports
> >
> > Filed at 8:42 p.m. ET
> >
> > By Reuters
> > WASHINGTON (Reuters) - Under pressure from U.S. steel makers and labor
> > unions, President Clinton on Friday imposed punitive tariffs on steel
> > imports in a move that could increase trade tensions between the United
> > States and major steel-producing nations including Brazil, Japan, South
> > Korea and the European Union.
> >
> > The White House said tariffs on imported line pipe would
> increase by up to
> > 19 percent. Steel wire rod, which is used to make hangers, cables and
> > fasteners, would face additional duties of up to 10 percent.
> The tariffs are
> > designed to help cash-strapped U.S. steel makers and thousands
> of workers
> > hard-hit by low-cost imports, chiefly from Asia.
> >
> > The White House estimated that wire rod and pipe shipments
> valued at $410
> > million could be affected by the decision, a fraction of total
> U.S. steel
> > imports of $13.8 billion. The tariffs would remain in place for
> three years.
> >
> > The decision, held up for months by a divided U.S. administration, could
> > prompt retaliation from the world's major steel producers.
> >
> > ``It was a difficult decision,'' a senior Clinton
> administration official
> > conceded.
> >
> > Japan's trade minister warned last year that an increase in
> steel wire rod
> > tariffs could spark a protectionist backlash from Tokyo, undermining
> > U.S.-Japan market-opening efforts.
> >
> > The European Union had also urged Clinton to show restraint.
> >
> > U.S. trade officials defended the duties, saying they were
> consistent with
> > World Trade Organization (WTO) rules. They said wire and pipe
> imports had
> > surged in recent years, while prices plummeted, crippling U.S.
> producers and
> > costing thousands of American steel jobs.
> >
> > U.S. steel makers welcomed the decision, though they had
> pressed for even
> > higher tariffs.
> >
> > ``The relief announced today should help an industry that has been
> > devastated by an onslaught of wire rod imports that swelled to
> record levels
> > in 1999,'' said Charles Verrill, attorney for steel makers in
> the wire rod
> > case, the United Steelworkers of America and the Independent
> Steelworkers
> > Alliance.
> >
> > The unions, traditionally allied with Clinton's Democratic party, had
> > pressured Clinton and Vice President Al Gore to rein in steel imports,
> > particularly from Japan. Gore, who is seeking the Democratic
> presidential
> > nomination, is counting on labor's support at the polls in the November
> > election.
> >
> > By some estimates, the U.S. steel industry suffered losses of
> $230 million
> > because of cheap imports between 1996 and 1998. Imports
> increased by over 40
> > percent during the period, Verrill said. U.S. wire rod producers employ
> > 4,000 workers; line pipe makers employ roughly 1,000 workers.
> >
> > Under Clinton's decision, the United States will impose an additional 10
> > percent tariff surcharge on imports of steel wire rod above
> 1.58 million net
> > tons in the first year.
> >
> > The surcharge on wire rod would drop to 7.5 percent in the
> second year and 5
> > percent in the third. Major producers include Trinidad and
> Tobago, Brazil,
> > Moldova, Ukraine and Germany.
> >
> > Imports of line pipe above 9,000 net tons would be subject to
> an additional
> > 19 percent tariff in the first year. In the second year this
> would drop to
> > 15 percent and in the third year to 11 percent. South Korea, Japan and
> > certain EU nations would be affected. South Korea is by far the largest
> > supplier.
> >
> > Mexico and Canada, U.S. partners in the North American Free
> Trade Agreement,
> > would be exempted, the White House said.
> >
> > U.S. trade laws allow domestic industries to seek curbs on
> imports found to
> > be causing them serious economic harm.
> >
> > In August 1999, Clinton brushed aside objections from European
> trade leaders
> > and approved a $1.5 billion emergency loan program to aid U.S.
> steel, oil
> > and gas companies hurt by cheap imports and low commodity prices.
>