| Some of the automotive suppliers from U.S. have | | | | 95 percent of the steel from U.S.A they have not |
| demanded for exclusions from the high tariffs which | | | | felt relief from the existed guidelines of the |
| were mostly agreed by the Bush administration and | | | | administration's exclusion process. |
| almost all companies filed range from Tier ! producers | | | | The process has described mainly speciality forms of |
| to the small Tier 3 Producers. | | | | steel from abroad which could not been created or |
| Motor& Equipment Manufacturers Association (also | | | | bought from the U.S. market. The U.S. steel |
| named MEMA), taking into account the possibilities of | | | | producers have reached exclusion in the first tour for |
| serious job losses has required for an expand of | | | | importing slabs and flat-rolled steel products at low |
| existent guidelines of the second stage of exclusions | | | | prices, while steel costumers have gained minimal |
| and 'to consider the critical factors of price and | | | | relief. Moreover, competitors from abroad have |
| supply steel as part of its decisions''s. | | | | gained a more powerful control over the U.S. market |
| Despite the fact that MEMA is prone to support an | | | | by buying steel at normal prices and by exporting |
| existent of domestic steel industry, its tariffs had a | | | | finished or partially finished products at lower tariffs. |
| strong negative effect on the automotive suppliers, | | | | MEMA claims is heavily concerned by the fact that |
| according to Chris Bates the president of MEMA. This | | | | high steel prices will threaten the viability of a |
| supply constraints and the increases in price which | | | | powerful American manufacturing center' without a |
| are generally a result of the high steel tariffs are now | | | | secure supply of raw materials and a steady cost |
| obliging large Tier 1 Automotive suppliers to start | | | | structure, U.S. auto parts and components |
| creating or buying components that they have | | | | manufacturers will not be able to secure future |
| previously created and purchased from foreign | | | | business and to ensure their competitive stance in |
| sources. | | | | the global automotive industry', MEMA claimed. |
| According to what MEMA claims, a tendency of | | | | MEMA will continue as strong supporter of the House |
| responding to the increase of steel tariffs is to | | | | Resolution, introduced by representative Joe |
| reduce the production and to start thinking about the | | | | Knollenberg on Oct. 9. The legislation which happens |
| movement of some manufacturing facilities | | | | to be bipartisan has gained support in the 107th |
| permanently abroad. MEMA also claim that the shift | | | | Congress and it has been introduced again in the |
| of movement facilities and jobs to other countries | | | | House in 3003. This Resolution of Knollenberg's asks |
| where prices remain the same is growing fast. | | | | the president to ask that the International Trade |
| The industry of auto parts suppliers haven't benefited | | | | Comission should reconsider the effect of the tariffs |
| from the first round of the process of exclusion, | | | | on steel consumption industries in U.S. |
| taken care of by the Department of Commerce and | | | | The present analysis must be included in the ITC's |
| the U.S. trade Representatives's office.Taking into | | | | midterm review of the administrations's steel |
| account the fact that the U.S. manufacturers of | | | | program, which should be released by September |
| automotive parts and components reach a price of | | | | 2003, said MEMA. |