CITAC Calls on Committee to Support U.S. Trade Laws to Join Manufacturers in Supporting Sensible Reform to Improve Trade Remedy Laws.

WASHINGTON -- The Consuming Industries Trade Action Coalition (CITAC) today called on the Committee to Support U.S. Trade Laws (CSUSTL) to put their rhetoric into action and support sensible reforms to U.S. trade remedy laws.

First, notes CITAC Executive Director Steve Alexander, "support for H.R. 1127, the 'American Manufacturing Competitiveness Act' (AMCA), in any upcoming trade bill passed by Congress should be a 'no-brainer' for CSUSTL." AMCA would allow U.S. manufacturing companies who consume raw materials to participate in trade cases before the U.S. Department of Commerce and the U.S. International Trade Commission.

"If CSUSTL wants a 'real manufacturing and trade policy for all American producers and workers' as they claim, then support for HR 1127 would do exactly that," said Alexander.

Under current law, U.S. industrial users, such as small- and medium-sized manufacturers, get left out of the trade remedy process when the government decides to place tariffs on vital raw materials, thereby restricting supply and artificially increasing prices. AMCA would address this problem by allowing industrial users to participate fully in these cases so that government agencies can make an informed decision when imposing duties.

"With CSUSTL supporters from the steel industry announcing robust profits and earnings this month, we are confident that the organization will want all manufacturers in the United States to have a seat at the table in trade remedy cases to ensure that U.S. trade policy does not hurt other sectors of domestic manufacturing," stated Alexander.

Alexander also once again called for an end to the use of zeroing by the Commerce Department, a practice that artificially inflates duties. The WTO Dispute Settlement Body has condemned zeroing at least six times in the past several years and the U.S. faces retaliation if the practice is not ended.

"The U.S. needs to end zeroing not just to comply with its WTO obligations, but also because zeroing hurts U.S. consuming industries," said Alexander. "We think that dumping is a measure of all sales by an exporter, not just a few. Therefore, zeroing penalizes U.S. manufacturers because it both imposes excessive taxes on imports and stifles free market competition by keeping out imports that are truly fairly traded. Zeroing also harms U.S. exporters because it encourages other countries to retaliate and close their markets to U.S. goods."

Alexander concluded, "It's a shame when some organizations go back to the same old playbook they have used for years and impugn the motives of U.S. manufacturers who dare to differ with the narrow sector of the U.S. economy that benefits from protectionism disguised as 'unfair trade' remedies. We all want U.S. industry to have remedies for truly unfair trade, but they must not be excessive and unfair themselves. In the upcoming serious debate on the future of U.S. trade policy, we are confident that the facts - and the majority of U.S. manufacturers - are on CITAC's side. We'll continue to fight for a trade policy that benefits all manufacturers and leave the name calling to others."