HomeMy WebLinkAboutMINUTES - 08031993 - 1.6 (2) THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C. 20506
JUL 13 1993
Mr. Tom Torlakson
Chairman 9
JUL
Contra Costa County Board of Supervisors
651 Pine Street, Room 106 SUPE��ORS
Martinez, California 94553 CLER C�MTMRA COSTACO.
Dear Mr. Torlakson:
Thank you for your letter to the President concerning the need
for USS-POSCO (UPI) to maintain access to hot-rolled carbon steel
sheet from Pohang Iron and Steel Company in Korea. The President
has asked me to respond to you on his behalf.
I have long been impressed with the UPI joint venture. The
modernization of this facility has been impressive as attested by
the "Factory of the Future" award from the California Department
of Commerce.
Foreign steel producers are welcome and encouraged to invest in
the United States and sell their steel to U.S. companies,
provided such sales are not injuriously dumped or subsidized.
Fairly-traded imported steel helps maintain pressure on U.S.
producers to provide quality products at competitive prices.
However, under U.S. law, consistent with international rules,
U.S. producers have the right to file anti-dumping and/or'
countervailing duty complaints if they perceive that they are
being injured by dumped or subsidized imported steel. In the
view of several U.S. . producers of flat-rolled steel, Korean
exports of these products, including hot-rolled sheet destined
for UPI, have been injuriously subsidized and dumped into the
United States. The U.S. Government is obligated to investigate
these claims and apply offsetting measures if warranted.
As you may know, the U.S. Department of Commerce has issued its
final determination that imported hot-rolled sheet from Korea has
benefitted from a 4 . 64 percent subsidy and have been sold at
prices 8. 19 percent below their fair market value. The
preliminary determinations had been significantly higher at 5.51
percent and 30 percent respectively.
Moreover, the U.S. International Trade Commission (ITC) held
public hearings on June 29-30 at which representatives from UPI
were able to present their case. The ITC will determine by July
27 if imports of flat-rolled steel, including hot-rolled sheet
from Korea delivered to UPI, have injured U.S. producers. No
2
offsetting duties will be applied unless they determine such
injury has occurred.
I very much appreciate you taking the time to share your views
and concerns on this important issue.
Zl
ely
1 Kantor