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“The American Iron and Steel Institute (AISI) has great concern over foreign government actions that are impacting the global steel market to the detriment of North American steel producers. One such action is the Chinese government’s decision to raise its VAT export rebates on a wide array of flat, long, and tubular products. This government action — reflective of China's longstanding efforts to manipulate its VAT system in order to promote steel exports — is particularly reckless in light of the fact that we are facing a global recession.   “Brazil's action is different, but also of concern. The Brazilian government raised tariffs (restoring tariffs to previously applied tariff rates) on imports of certain steel products. This action will likely divert world steel exports to NAFTA markets.   “Since the United States has neither a system of VAT rebates to stimulate exports or any import duties on steel mill products (we agreed to go to zero steel tariffs in the Uruguay Round), these moves represent particular harm to American steel producers. The fact these trade-restricting and trade-distorting actions were apparently taken largely by fiat, and without any transparency in process or policy, is a further cause for concern – reflecting a tendency to promote particular outcomes in trade through direct government interventions, rather than through a transparent, rules-based approach.   “We are flagging these actions for our own government to review in light of the importance of trade relations between the U.S. government and the governments of both China and Brazil.”   Thomas J. Gibson AISI President and CEO

  

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