July 2, 1999
News Release 99-090
Inv. No. TA-201-69

ITC ANNOUNCES RECOMMENDATIONS AND VIEWS ON REMEDY
IN ITS GLOBAL SAFEGUARD INVESTIGATION
INVOLVING IMPORTS OF CERTAIN STEEL WIRE ROD

The U.S. International Trade Commission (ITC) today announced the recommendations and views on remedy that its members will forward to the President in its global safeguard investigation regarding imports of certain steel wire rod.

Today's action follows the Commission's May 12, 1999, determinations in the injury phase of this investigation, in which three Commissioners made affirmative determinations and three made negative determinations. Because the Commission's vote was evenly divided, both sets of determinations will be forwarded to the President, who may consider either as the Commission's determination.

Under the statute, only those Commissioners who made affirmative determinations were eligible to vote on the remedy recommendation. However, Commissioners who made negative determinations may submit separate views regarding what action, if any, the President should take. The Commission will submit its report to the President by July 12, 1999. The report will include the Commissioners' determinations, recommendations, and views. The President, not the Commission, will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief.

Vice Chairman Marcia E. Miller and Commissioner Stephen Koplan announced that they will recommend that the President impose an additional tariff on imported steel wire rod for a four-year period. The additional tariff would amount to 15.0 percent ad valorem and be reduced to 13.0 percent ad valorem in the second year of relief, 11.0 percent ad valorem in the third year of relief, and 9.0 percent ad valorem in the fourth year of relief. With respect to imports covered by their recommendation, Vice Chairman Miller and Commissioner Koplan noted that they made negative findings on May 12 with respect to imports of steel wire rod from Canada and Mexico under section 311 of the NAFTA Implementation Act and thus this remedy does not apply to imports from those countries. Their findings and remedy recommendations do apply to imports of steel wire rod from beneficiary countries of the Caribbean Basin Economic Recovery Act but do not apply to imports of steel wire rod entered duty-free under the Andean Trade Preference Act, or to any imports of steel wire rod from Israel. Vice Chairman Miller and Commissioner Koplan further noted that their findings and remedy recommendations do not apply to certain specialty steel wire rod items, specifically, tire cord quality wire rod, pipe wrap quality wire rod, and valve spring quality wire rod. Their remedy recommendations to the President will contain definitions of these terms.

Chairman Lynn M. Bragg announced that she will forward the details of her separate remedy recommendation to the President, along with her views on injury, in the Commission's report due on July 12, 1999.

Commissioners Carol T. Crawford, Jennifer A. Hillman, and Thelma J. Askey, because they made negative determinations on injury, were not eligible to vote on remedy. However, they announced that they do not believe any import relief is appropriate in this investigation. Their views on injury, and any views they may submit as to remedy, will be submitted to the President by July 12, 1999.

On May 12, 1999, three Commissioners made affirmative determinations in this investigation. Chairman Bragg found that increased imports of certain steel wire rod are a substantial cause of the threat of serious injury to the U.S. steel wire rod industry. Vice Chairman Miller and Commissioner Koplan found that increased imports of certain steel wire rod are a substantial cause of serious injury to the U.S. steel wire rod industry. Commissioners Crawford, Hillman, and Askey made negative determinations, finding that certain steel wire rod is not being imported into the United States in such increased quantities as to be a substantial cause of serious injury or threat of serious injury to the domestic steel wire rod industry.

Under section 311 of the North American Free Trade Agreement (NAFTA) Implementation Act, the three Commissioners who made affirmative determinations were required to make findings with regard to imports of certain steel wire rod from Canada and Mexico. Chairman Bragg found that imports of steel wire rod from Canada account for a substantial share of total imports and contribute importantly to the threat of serious injury to the domestic steel wire rod industry. Vice Chairman Miller and Commissioner Koplan found that imports of steel wire rod from Canada account for a substantial share of total imports, but do not contribute importantly to serious injury to the domestic steel wire rod industry. All three Commissioners found that imports of steel wire rod from Mexico do not account for a substantial share of total imports and do not contribute importantly to serious injury or threat of serious injury, as the case may be, to the domestic steel wire rod industry. These findings will be forwarded to the President with the Commission's determinations.

The Commission's public report to the President Certain Steel Wire Rod (Inv. No. TA-201-69, USITC Publication 3207, July 1999) will contain the views of the Commission and information developed during the investigation. A copy may be requested after August 2, 1999, by calling 202-205-1809 or writing to The Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

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