President refuses to sign Section 421 for the metalcasting industry.
On October 2, 2003, the ITC instituted the 421 investigation requested by McWane Inc., Birmingham, Ala., to determine whether certain DIWF from China were causing a market disruption in the U.S. Last December, the ITC reached a ruling in favor of McWane and found that imports of DIWF had increased rapidly and caused both a market disruption and material injury to the domestic industry. The ITC recommended in a 6-0 vote that President Bush restrict DIWF imports.
Despite the recommendation, President Bush decided that not only was the Section 421 not in the economic interests of the U.S., but that the import relief would have an adverse affect on the U.S. economy--greater even than the import relief would provide.
The President's motivation for ruling against the Section 421 was based on evidence that concluded U.S. companies would gain little if tariffs or quotas were put in place because other countries' imports would quickly fill the void. The President's decision also stated that evidence suggested domestic producers of DIWF had a strong competitive position in the U.S., and that imports from 2002-03 had been stable in volume and experienced only a slight decline in value.
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|Title Annotation:||Washington Alert|
|Article Type:||Brief Article|
|Date:||Apr 1, 2004|
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