STEEL INSTITUTE URGES USTR TO CURB STATE-OWNED ENTERPRISES








For Immediate Release
November 1, 2013

WASHINGTON, D.C. – AISI President and CEO Thomas J. Gibson today urged the U.S. Trade Representative (USTR) to include “strong and enforceable” disciplines regarding state-owned enterprises (SOEs) as talks continue on the Trans-Pacific Partnership (TPP) trade agreement in the next few weeks.

In a letter to the USTR Michael Froman, Gibson said, “Outside of the United States, state-ownership in the steel industry is significant, especially in Asian countries, and any TPP agreement should….ensure that SOEs operating in the commercial arena and competing with private sector companies do not receive financing or other benefits that unfairly advantage them over private sector companies.”

On behalf of the steel industry, where SOEs have created an un-level playing field for North American steel, Gibson’s letter urged that:

SOEs should not be permitted to receive government subsidies or other benefits that provide an unfair advantage to the enterprise; 

SOEs within a given country should be clearly identified and the disciplines in the agreement should apply to all SOEs involved including SOEs owned or controlled by central, state or provincial, and local governments; 

SOEs should be required to disclose material information related to corporate structure, finances, its relationship to the government and other issues;
 
A fairly adjudicated dispute settlement mechanism to address any alleged violations of these disciplines or applicable laws and regulations should be established.


Link to the AISI letter found here.

Contact: Lisa Harrison
202.452.7115 / lharrison@steel.org

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice.  AISI also plays a lead role in the development and application of new steels and steelmaking technology.  AISI is comprised of 24 member companies, including integrated and electric furnace steelmakers, and approximately 125 associate members who are suppliers to or customers of the steel industry.  AISI’s member companies represent over three quarters of both U.S. and North American steel capacity.  For more news about steel and its applications, view AISI’s Web site at www.steel.org.