The U.S. International Trade Commission has found in favor of the domestic steel industry in a case that pitted the hard-hit domestic steel industry against less expensive foreign imports. The decision is a first step toward possibly creating protective barriers that could hike steel prices.
In a ruling Oct. 22, the ITC found 12 of 33 domestic steel product lines have been seriously injured due to imports. The 12 account for close to 80 percent of all the steel produced in the United States.
The ITC will next hold hearings Dec. 19. After that hearing the ITC will submit its recommendations to President Bush. After receiving the commission's recommendations, the Bush administration will have until Feb. 19 to decide what action to take. Possible repercussions from the hearings could be import quotas, tariffs or a combination of both.
More than 80 percent of all steel shipped to the United States could be restricted for three years since the U.S. International Trade Commission voted Monday afternoon that most flat-rolled products and certain long product imports were a substantial cause of serious injury to the industry.
Global steel production increased 7% last year to a record 747 million tons, and efforts are under way to negotiate a worldwide reduction in steel production.
Over the past several year around two dozen domestic steel companies have filed for bankruptcy protection. Bethlehem Steel, one of the largest domestic steel companies, earlier this month filed for bankruptcy protection.
In response to the decision, the European Commission stated that contrary to a ruling by the International Trade Commission, there is no injury to U.S. steel industry from imports of some foreign steel products.