FOR IMMEDIATE RELEASE September 19, 2003

Contact:

Dara Klatt The PBN Company Tel. 202-466-6210 Dara.Klatt@pbnco.com

CITAC STEEL TASK FORCE: STEEL CONSUMERS TELL
PRESIDENT BUSH TO "TERMINATE THE TARIFFS!"

International Trade Commission (ITC) Mid-Point Review On Steel Tariffs Reveals Damage to Steel Consumers and the Economy

Washington, DC — Responding today to the International Trade Commission's (ITC) mid-point review of the Section 201 steel tariffs, and the Section 332 study of the effects of the steel tariffs on steel-consuming industries in the U.S., members of the Consuming Industries Trade Action Coalition Steel Task Force (CITAC STF) urged President Bush to consider the ITC's finding of damage to the economy and terminate the steel tariffs as soon as possible.

CITAC STF members asked President Bush to closely review the 332 study, "Steel-Consuming Industries: Competitive Conditions with Respect to Steel Safeguard Measures," which outlined the damage done to steel consumers. "Prices have increased, jobs have been lost," the report said.

The steel safeguard measures resulted in increased prices, decreased returns on capital and labor in steel consuming industries, and a net loss to the United States businesses of some $680 million (see Table 4-3 of the 332 study). Nearly half of the 485 questionnaire responses reported significant declines in the availability and quality of steel in the year following the imposition of the tariffs. Nearly one-quarter of responding firms reported that their customers shifted to offshore sourcing in the first year of the tariffs (37 percent of metal fabricators reported this shift).

"The report's conclusion confirmed what we have been saying for a year and a half: small steel-consuming manufacturers are being forced to lay off workers and move production out of the U.S. because of the higher cost of steel. Many thousands of jobs have been lost, and the economy as a whole has been damaged," said William E. Gaskin, CITAC STF Chairman and president of Precision Metalforming Association.

"The 332 study's Executive Summary unfortunately doesn't capture the full scale of the damage caused by the steel tariffs. But the numbers contained in the body of the report supports what we've been saying all along: the steel tariffs are dragging down the economy and need to go," said Lewis Leibowitz, Counsel to the CITAC Steel Task Force.

Now the evidence we have awaited for so long is in. We urge President Bush to consider the ITC report on the effects of the steel tariffs on consumers and terminate these damaging tariffs as soon as possible. Removing the steel tariffs is a real solution to stem the flow of manufacturing outside the country and to help the economy."

Steel consuming manufacturing representatives across the country also reacted to the ITC's report today. "I testified before the ITC this summer and told them how damaging the steel tariffs have been. For me, and for other steel consumers I know, it's been a tremendously difficult time since March 2002 when the tariffs were imposed," said Wes Smith, President and CEO of E&E Manufacturing Company in Plymouth, Michigan, a supplier of metal stampings and fasteners for the automotive market. "We just can't be competitive with the steel tariffs in place. I hope the President determines when he looks at this that we need to stop the tariffs."

Leibowitz summarized the decision facing the President. "The President's decision has three major aspects: legal, political and economic," Leibowitz said. "Legally, the President has ample authority to terminate the tariffs if he chooses to do so. Politically, the situation is much different that it was last year, especially for retired steel workers. Economically, the decision is a no-brainer: the tariffs will do much more harm than good if they are continued."

The ITC report is available at www.usitc.gov. For more information on CITAC STF, visit www.citac.info/steeltaskforce.

CITAC is a coalition of companies and organizations committed to promoting a trade arena where U.S. consuming industries have access to global markets for imports that enhance the international competitiveness of American firms. The CITAC Steel Task Force is comprised of steel consumers working to achieve the termination of the 201 steel tariffs by mid-point review and reform U.S. trade laws and policies to benefit U.S. steel consumers.