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Government
Report Supports
Byrd Subsidy Offset Law
The Government Accountability Office issued a report, “Issues
and Effects of Implementing the Continued Dumping and Subsidy Offset
Act,” which listed benefits that the law—called the Byrd
Amendment—confers on American farmers, businesses and workers
confronted by persistent and unfair foreign trade practices. The
reforms recommended in the report focus on improving the administration
and enforcement of the law.
Two
groups were quick to support the GAO’s conclusions: the Committee
to Support U.S. Trade Laws and the United Steelworkers of America.
However, the Consuming Industries Trade Action Coalition is lobbying
Congress to support legislation to limit direct payments to American
industry under the Byrd amendment, calling the practice “corporate
welfare.”
According
to the Committee to Support U.S. Trade Laws, the GAO report shows
that through the Subsidy Offset Act, distributions have enabled
companies and workers to survive and even thrive, including some
in the metals industries.
“There
may be some improvements that could be made, but the basic program
is sound,” says CSUSTL Executive Director David Hartquist.
Terence P. Stewart, also with CSUSTL, notes, “If dumping and
subsidization stop, which is what is envisioned by the trade laws,
there is no money to be distributed through CDSOA, and that is the
best outcome.”
Meanwhile
the Consuming Industries Trade Action Coalition, which has long
sought to get the Byrd amendment repealed, praised Senate Finance
Committee Chairman Charles Grassley, R-Iowa, for introducing three
amendments to the Commerce Justice State Appropriations Bill to
halt payments resulting from the Subsidy Offset Act.
The
senator introduced Amendment 1680, which would withhold Byrd amendment
distributions until the U.S. Trade Representative certifies that
the payments are consistent with U.S. World Trade Organization obligations.
By so doing, this change would forestall future retaliatory actions
that harm U.S. exporters and U.S. consuming industries, supporters
say. Two other pieces of legislation, both from Grassley, strike
language requiring the negotiation of a WTO settlement on the Byrd
amendment, which CITAC says essentially ties the hands of U.S. negotiators.
In
2002, the WTO ruled that the Byrd amendment violates U.S. trade
obligations and later authorized eight countries to retaliate based
on the amount of Byrd Amendment distributions by the U.S. Countries
that have imposed retaliatory duties against American imports include
Mexico, Japan, the European Union and Canada. Total retaliatory
tariffs from these countries now approach $114 million, CITAC reports.
MSCI:
Aluminum Shipments Rise,
Steel Shipments Recover
Shipments of aluminum products rose at U.S. and Canadian metals
service centers in August, while shipments of steel products in
both nations recovered from declines reported in July, according
to the Metals Service Center Institute’s most recent Metals
Activity Report.
Steel
inventories at U.S. service centers were lower at the end of August
in both year-over-year and month-to-month comparisons, while year-over-year
inventories of aluminum products were higher at the end of August
than at the end of August 2004. Steel inventories at Canadian service
centers were lower at the end of August than year-earlier and month-earlier
levels, while aluminum inventories were up in both year-over-year
and month-to-month comparisons.
U.S.
service centers shipped 5.02 million tons of steel products in August
2005, an increase of 0.6 percent over the same month a year ago.
Year-to-date shipments of steel from U.S. service centers, at 37.06
million tons, were down 3.5 percent from the same period in 2004.
U.S.
service centers’ steel inventories at the end of August were
nearly 13.39 million tons, down 7.5 percent from August 2004 and
6.5 percent from July. The 2.7-month supply at month’s end
was down 8.0 percent from a year ago, and 24.0 percent below July.
U.S.
service center shipments of aluminum products of 103,900 tons in
August were up 10.5 percent from August 2004 and marked the 20th
consecutive month of year-over-year increases. Year-to-date shipments
of aluminum of 797,600 tons were 7.4 percent higher at the end of
August than in the same period of 2004.
Aluminum
inventories at U.S. service centers, 367,400 tons, were 11.9 percent
higher than at the end of August 2004, but down 0.4 percent from
July. At the current shipping rate, this represents a 3.5-month
supply of aluminum, down 10.4 percent from July 2005.
Canadian
service center steel shipments totaled 357,700 tons in August, down
0.8 percent from August 2004. Year-to-date shipments of nearly 2.79
million tons are down 7.0 percent from the same period in 2004.
Steel
inventories at Canadian service centers totaled 1.07 million tons
at the end of August, a decrease of 2.3 percent from August 2004
and down 3.4 percent from July. At the current shipping rate, this
represents a 3.0-month inventory supply, a decrease of 1.5 percent
from a year ago and a decrease of 22.3 percent from July 2005.
August
aluminum shipments from Canadian service centers rose 8.8 percent,
to 10,100 tons, compared with August 2004. Year-to-date shipments
of 76,800 tons are 2.8 percent higher than the same period a year
ago.
Canadian
service center aluminum inventories of 32,000 tons were up 16.9
percent from a year ago and 2.3 percent from July. At current shipping
rates, this is a 3.2-month supply, up 7.5 percent from a year ago
but down 19.5 percent from July 2005.
CBSA:
Red Metals Shipments Higher
in August, But Down for the Year
Copper shipments during August increased almost 18 percent from
July, but with three more shipping days in August the average daily
shipping rate month-to-month rose only 0.2 percent.
Compared
to August 2004, total shipments were even, but the average daily
shipping rate for August 2005 was down 3.9 percent from 2004.
Total
August copper shipments this year surpassed last year’s by
9.3 percent, with all copper product categories showing gains. In
a particular spike, copper pipe and tube shipments were up nearly
65 percent from August 2004, continuing a year-long gain. For the
first eight months of the year, copper pipe and tube shipments were
21.3 percent ahead of the same 2004 period.
Total
alloy shipments declined 3.8 percent from August 2004, and were
down in all product categories other than rod (except 300 series).
In July, all other alloy rod and bar shipments were down 29.65 percent
from June, so August’s gain of 36.32 percent over July balanced
out. However, this category was the only one in the alloy group
ahead after eight months of the year, gaining 2.3 percent.
All
product shipments January through August lagged behind 2004 by just
under 6 percent.
IISI:
Global Crude Steel
Output Grows 6.1%
World crude steel production for the 61 countries reporting to the
International Iron and Steel Institute, Brussels, was estimated
to be 91.4 million metric tons in August, or 6.1 percent higher
than for the same month last year.
Chinese
production was 30.4 million metric tons in August, rising 26.8 percent
from a year earlier. Total crude steel production in China is 224.9
million metric tons for the first eight months of 2005. This is
up 28.2 percent from the same period of 2004. Total production in
Asia was 48.7 million metric tons in August, up 17.7 percent from
August 2004.
Crude
steel output in the United States was 7.7 million metric tons in
August, down 8.4 percent from August 2004. Year-to-date production
in the U.S. was 61.8 million tons, down 5.8 percent vs. the first
eight months of 2004. Production in Canada was 1.2 million metric
tons, 10.8 percent below August 2004.
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