North American steel producers are among the most competitive in the world and can compete with any private, market-based producers, but we cannot compete against foreign governments that do not abide by international trade rules.

Today, the revitalized U.S. steel industry exports roughly 15 percent of its total shipments (about 80 percent of which go to other NAFTA countries), compared to the low single digits just a few years ago.  We support a significant increase in U.S. exports of steel-containing manufactured goods and the elimination of the U.S. manufacturing trade deficit.  However, we cannot achieve these goals unless we expand access to offshore markets and address foreign unfair trade practices.

“China Inc.” presents a special competitive challenge for U.S. producers of steel and steel-containing goods.  This is due both to the enormous size of China’s steel and steel-intensive industries and because these industries are government–run, heavily subsidized and do not function under free market principles. Of particular concern is the huge subsidy benefit Chinese producers receive as a result of China’s policy to deliberately undervalue its currency.  This hurts domestic manufacturers competing in the U.S., in China and in third country markets.

Industry Position: A more effective U.S. trade policy is needed to level the playing field as well as preserve and strengthen our nation’s manufacturing base. The U.S. Government must expand rules-based trade; keep our laws against unfair trade strong; strictly enforce trade agreements; and use all means to prevent and address unfair trade and injurious surges.”
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