AISI Criticizes WTO Ruling In Steel Tariff Dispute

WASHINGTON, D.C. – American Iron and Steel Institute (AISI) President and CEO Kevin Dempsey issued the following statement in response to a ruling announced today by the World Trade Organization (WTO) regarding disputes challenging the national security tariffs on steel imports imposed in 2018 under Section 232 of the Trade Expansion Act of 1962:

“A WTO dispute panel has once again gone beyond its mandate. Each member of the WTO has the right to determine what action it considers necessary to protect its own national security and today’s panel ruling disregards this central feature of the WTO system,” Dempsey said. “The tariffs and quotas on steel were instituted by the president following a determination by the Secretary of Commerce that high levels of steel imports and continuing global excess capacity in steel threatened to impair U.S. national security as defined in section 232 of the Trade Expansion Act of 1962. The WTO has no authority to second guess the U.S. government on matters of our national security. This decision highlights once again why significant and systemic reform of the WTO dispute settlement system is essential to ensure that all WTO members’ rights are fully protected.

“The Section 232 program on steel has worked to reduce the repeated surges in imports that threatened the health of the American steel industry. It also has incentivized new capital spending by U.S. steelmakers, with investments of more than $22 billion in new, expanded or restarted production since March 2018. Unfortunately, the global steel overcapacity crisis continues to plague steelmakers worldwide, with excess capacity estimated to exceed 562 million metric tons in 2022, more than six times total steel production in the United States. And many countries continue to increase their steel capacity. For example, cross-border investments into Southeast Asia, including many incentivized through China’s Belt and Road Initiative, will add over 90 million metric tons of new, export-oriented steelmaking capacity in that region alone over the next few years. Given these facts, we believe the Section 232 measures on steel remain critically important for U.S. national security. AISI strongly urges the Biden administration to maintain the Section 232 program in steel and disregard this erroneous decision.”

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Contact: Lisa Harrison

202.452.7115 / lharrison@steel.org

AISI serves as the voice of the American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI’s membership is comprised of integrated and electric arc furnace steelmakers, and associate members who are suppliers to or customers of the steel industry. For more news about steel and its applications, view AISI’s website at www.steel.org. Follow AISI on Facebook, LinkedIn, Twitter (@AISISteel) or Instagram.