Trade Cases
Ag Industry Against Section 232 Trade Restrictions
Written by Sandy Williams
July 13, 2017
The agriculture industry challenged the use of national security as a reason to limit steel and aluminum imports, in a missive to Secretary of Commerce Wilbur Ross on Monday. A letter from 18 agricultural associations urged the administration to consider the consequences trade barriers may have on the food industry.
“Many countries that export steel to the United States are also large importers of U.S. agriculture products. The potential for retaliation from these trading partners is very real,” said the associations.
The Section 232 national security argument under the 1994 General Agreement on Tariffs and Trade Arcticle XXI is rarely used, and for good reason, said the association officials, who called it the “Pandora’s Box of the GATT.”
Since no one country can dictate the security needs of another, others may follow the United States’ example and find ways to circumvent trade commitments by invoking national security, argued the group.
U.S. farmers rely on international trade agreements to keep markets open. “Undermining that system through an extraordinarily loose application of national security exceptions would be a short-sighted mistake.”
The associations urged the Department of Commerce to avoid “igniting a trade war” through its use of Section 232.
The American Institute for International Steel forwarded to its members the agriculture association letter as another example of the large and growing unpopularity of the Section 232 initiative.
“It is now abundantly clear that it is the voice of the AIIS, as well as others, that continues to lead and to be heard on this issue within the administration, as evidenced by the somewhat surprising and unexpected delays in completing the investigation phase of this process,” wrote AIIS Chairman John Foster. “Our objective remains to stress that no new protectionist actions are needed for steel.”
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.
Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.
Trump’s ‘Liberation Day’ brings 10% baseline tariffs; steel, aluminum, and autos/parts excluded
President Trump’s promised “Liberation Day” has arrived, with a 10% minimum tariff on imports. But there are some very important exceptions: The United States’ USMCA partners, Canada and Mexico, are excluded from the reciprocal tariffs for now. In addition, steel, aluminum, as well as autos and auto parts are excluded from the reciprocal tariffs. That’s […]
Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).
CRU: Canacero urges Mexico-US partnership to fend off Asian steel imports
Victor Cairo, head of Mexico’s steel sector body Canacero and CEO of ArcelorMittal Mexico, says he is confident negotiations between the Mexican and US governments planned for April 2 will lead to the creation of a regional block to substitute imports, especially from Asia.