Of capitol importance: congress, ITC look to help metalcasters.Inside This Story: * Recent federal government action and its effect on U.S. metalcasters is examined. * The Section 332 Fact-Finding Study by the U.S. ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → is expected to be completed and issued this month. * Two new sets of legislation that will aid metalcasters have been introduced on Capitol Hill--one focuses on countervailing duties Countervailing duties are a means to restrict international trade in cases where imports are subsidized by a foreign country and hurt domestic producers. According to WTO rules, a country can launch its own investigation and decide to charge extra duties, provided such additional and the other on Association Health Plans. While the future of the U.S. metalcasting industry is tied to its ability to increase production and profit margins, Washington, D.C., and the federal government may begin to exert some influence again as to how the competitive landscape rolls out. The industry's Section 332 Fact-Finding Study is about to unveil its findings, countervailing duty Noun 1. countervailing duty - a duty imposed to offset subsidies by foreign governments tariff, duty - a government tax on imports or exports; "they signed a treaty to lower duties on trade between their countries" laws have been introduced in both the House and Senate and an Association Health Plan initiative is gaining support throughout Congress. Following is a look at each of these issues and what their current status is. Each item will have an effect on the future of the U.S. metalcasting industry. The question is to what degree? Section 332 Investigation Initiated a year ago, the metalcasting industry's Section 332 Fact-Finding Study, conducted by the U.S. International Trade Commission (ITC), was delivered to the U.S. House of Representatives Ways and Means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. Committee this month for its approval. The U.S. ITC released the report from its investigation into the competitiveness of the U.S. industry in the global market in early May. The Ways and Means Committee is expected to release the report back to the ITC for public distribution by mid-May. The report generated by the ITC is based on a year-long investigation in which it gathered financial and other operating information from various U.S. metalcasters (representing all facets of the industry), U.S. casting buyers and foreign casting producers. From this information, the ITC generated a report that details the U.S. industry's level of competitiveness in the world market. This report will serve as an authoritative base of information on the challenges facing U.S. metalcasters. Once the report is released, MODERN CASTING will provide details on its results as well as how the information can be used by metalcasters. Countervailing Duty Laws U.S. metalcasters, as a whole, see their greatest competitive threat as low-cost foreign sources of castings. While casting buyers are not pursuing these sources with as much vigor as they did three to four years ago, the next economic downturn is sure to point more purchasers toward the low costs offered by non-market economies Noun 1. non-market economy - an economy that is not a market economy economic system, economy - the system of production and distribution and consumption , such as China. In an attempt to help U.S. metalcasters, as well as all U.S. manufacturing businesses, compete on a more level playing field See net neutrality. with non-market economies, the U.S. House and Senate both unveiled new legislation in March to allow countervailing duty laws to apply to non-market economies as they do to market economies. The Stopping Overseas Subsidies Act of 2005 was introduced in both the Senate [S. 593 by Sens. Susan Collins
Susan Margaret Collins (born December 7 1952, in Caribou, Maine) is an American politician, the junior U.S. Senator from Maine and a Republican. (R-Maine) and Evan Bayh Birch Evans Bayh III (commonly known as Evan Bayh) (pronounced like "bye"; IPA pronunciation: [baɪ]) (born December 26, 1955) is an American politician who has served as the junior U.S. (D-Ind.)] and House [H.R. 1216 by Reps. Phil English This article is about the U.S. congressman. For other uses, see Phil English (disambiguation). Phillip Sheridan "Phil" English (born June 20, 1956) has served as a Republican member of the United States House of Representatives since 1995 from the U.S. (R-Pa.) and Artur Davis For people named Arthur Davis, see . Artur Genestre Davis (b. October 9 1967) is an American politician who has been a Democratic member of the United States House of Representatives since 2003, representing Alabama's At-large congressional district, a district created under (D-Ala.)]. These bills followed up on countervailing duty legislation that was introduced in both the House and Senate last year but failed to gain any steam. U.S. countervailing duty legislation is designed to mitigate the effects of unfair foreign government interventions through trade distorting subsidies that result in the delivery of low-cost products into the U.S. marketplace. These subsidies, for example, could include government reimbursement for operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , the provision of loans to uncreditworthy companies and export assistance. Countervailing duty laws allow a duty equal to the amount of the subsidy to be placed on the imported product. In the 1980s, however, the U.S. Dept. of Commerce determined that U.S. countervailing duty laws should not apply to imports from non-market economies, leaving U.S. industries no direct recourse to combat these foreign subsidies. The House and Senate legislations would reverse the 1980s decision and allow the countervailing duty laws to be brought against non-market economies. While it isn't possible to place a timetable on when this new countervailing duty legislation will progress through Congress, it has greater support through co-sponsorship by members of Congress in both the House and Senate and support from a variety of industry groups. Association Health Plans Turning the focus back to the domestic front, legislation (S. 406 and H.R. 525) has been introduced in both the House and Senate to allow metalcasters to band together across state lines through a national association and purchase health care coverage for their employees as a group. Currently, self-insured labor unions labor union: see union, labor. and larger businesses can offer their employees health benefits under one uniform federal statute known as the Employee Retirement Income Security Act The Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. § 1001 et seq. (1974), is a federal law that sets minimum standards for most voluntarily established Pension and health plans in private industry to provide protection for individuals enrolled in these plans. of 1974 (ERISA See Employee Retirement Income Security Act. ERISA See Employee Retirement Income Security Act (ERISA). ). Utilizing ERISA saves these organizations from having to comply with the different rules, regulations and benefit mandates in each state in which they operate. However, ERISA does not apply to association health plans (AHPs). As a result, AHPs, as they currently stand, would be a nightmare to administer due to the differing health care rules of each state. With the new legislation introduced, ERISA would be extended to AHPs, allowing metalcasting firms and suppliers to work collectively to obtain the affordability and choice in the health care marketplace that larger companies and labor unions enjoy as well as reduce the administrative burdens each individual firm must endure today. It is estimated that compared to employees at larger companies, small business workers pay close to 20% more for their health insurance benefits. The Congressional Budget Office The Congressional Budget Office (CBO) is responsible for economic forecasting and fiscal policy analysis, scorekeeeping, cost projections, and an Annual Report on the Federal Budget. The office also underdakes special budget-related studies at the request of Congress. estimates that small businesses obtaining health insurance through an AHP AHP Assistant House Physician. will save 13-25% on their premiums, which translates to $450-1,250 per covered employee. As with the countervailing duty legislation, no current timetable exists as to when this legislation will come up for consideration. For More Information Visit www.usitc.gov for more information on Section 332 Fact-Finding Studies and countervailing duties. Visit www.nfib.com and search for more information on Association Health Plans. |
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