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Article #143: Steel tariffs are needed to be lowered from Auto Parts Industry

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






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