COLORADO SPRINGS, Colo. The U.S. steel industry could
feel the effects of two major trade deals being negotiated by
the government if certain provisions are not properly examined,
according to participants at the American Iron and Steel
Institutes general meeting.
Trade has been an ongoing issue for steel interests,
particularly as some say that while U.S. borders remain
relatively open, many countries have restrictions on either
imports or exports of steel that cause an uneven playing field.
Such restrictions, combined with government-backed industries,
or state-owned enterprises, put U.S. steelmakers at a
disadvantage, some say (
amm.com, May 1
For example, trade experts say that a successful negotiation of
the Trans-Pacific Partnership (TPP)a proposed trade pact
between the United States and Australia, Brunei, Canada, Chile,
Malaysia, Mexico, New Zealand, Peru, Singapore and
Vietnamcould ultimately create a gold
standard for trade transparency with China.
Japan recently expressed interest in joining the pact, which
has made some steel industry participants uneasy.
Japan is also being allowed into the Trans-Pacific
Partnerships ... trade talks despite the historically
closed nature of the Japanese auto market and Japans
recent actions to substantially weaken its currency, John
J. Ferriola, president and chief executive officer of
Charlotte, N.C.-based Nucor Corp., said during a news
conference at AISIs 121st annual general meeting in
Colorado Springs, co-hosted by the Metals Service Center
The United States is also in separate negotiations with the
European Union on a trade pact. While AISI president and chief
executive officer Thomas Gibson said there are no steel tariffs
between the two parties, a main concern is regulatory harmony.
For an automobile produced in the United States to be
exported to Europe, we have to have regulations in both
(places) that are equivalent, and that would be a good thing
for the U.S. automakers that desire to ship to Europe, he
Theres an issue in Europe right now with some of
the regulatory policies theyve adopted ... (and) if
regulatory harmonization means adoption of some European-style
regulations in ... how they regulate factories and sources of
emissions, that can be a real problem.