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WEIRTON, WV. -- Weirton Steel Corp.’s Chief Executive Officer Richard Riederer is warning that the U.S. steel industry, already under siege from illegal imports, now faces additional pressure from foreign governments. Riederer, who also is vice chairman of the American Iron and Steel Institute, today said domestic companies and steel unions must work hard to ensure the U.S. government stands its ground "in the wake of increased rhetoric and threats" from the 15 countries represented by the European Commission (EC) and Japan. "The Europeans and Japanese have become more outspoken on the way our industry and our government has addressed certain aspects of the import crisis. We have raised their ire and they are now playing politics," Riederer commented. According to Riederer, the EC trade commissioner recently sent a letter to U.S. Trade Representative Charlene Barshefsky suggesting that the $1.5 billion Emergency Steel, Oil and Gas Loan Program violated the World Trade Organization’s subsidy regulations. President Clinton last week signed into effect the loan program, which enables domestic steel companies injured financially from illegal imports to obtain loans to help them regain their competitiveness. The EC’s letter mirrors comments made last week by a Japanese government official that the loan program will severely distort world markets. The EC also contends that trade cases filed by U.S. steel companies and unions are "protectionist reactions." Concerning Japan, Riederer said the Japanese government is willing to exchange information on the status of its and the U.S.’s steel industries, trade issues and related matters, but offered conditions before discussions could be held. "Japan, the single largest contributor to last year’s steel surge, is concerned with the appropriateness of filing trade cases against them and other countries. Further, they will not participate in talks if: they cannot address our trade case system; the presumption exists that they engaged in unfair trade practices; and, they are asked to limit exports to the U.S.," Riederer said. "What Japan has done to the U.S. steel industry is obvious. We may not have been overly satisfied with our government’s handling of the trade problem, but we will let Washington know that we are not about to give up any ground we’ve gained." Japan was hit with hefty tariffs earlier this year on its hot-rolled steel entering American markets after Weirton Steel, 12 other domestic steelmakers and two steel unions proved to the U.S. government that Japan violated U.S. trade laws. It was proven that Japan sold its steel in the U.S. at illegally low prices. "The Japanese are concerned about President Clinton’s new Steel Action Program, which encourages the filing of trade cases if we believe an injustice has occurred. The Japanese believe such language will cause the U.S. steel industry to abuse the legal system," commented Riederer. "The fact is, it has been other countries that have abuse America’s open arms policy to trade, which, in turn, has caused an abuse of U.S. mills and their employees. We have no intention of letting up in our legal actions," stressed Riederer. In addition to the hot rolled cases, the latest round of trade action came in June when Weirton Steel and several other complainants filed trade cases with the U.S. government against Japan and other countries for allegedly selling cold-rolled steel in American markets. Weirton Steel and other companies have threatened to file further cases against as yet-unnamed countries for the same selling practices involving tin plate and galvanized steel products. Riederer said he will continue discussions with other steel and union officials aimed at keeping pressure on the U.S. government to act in the best interest of American companies and their employees as other countries continue their protests. Weirton Steel Corp. Media Contact: |
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