For Immediate Release

BETHLEHEM,Pa., and PITTSBURGH,Pa., June 19, 2002 -- The Office of the United States Trade Representative (USTR) announced on June 17 its intention to grant 47 additional exclusion requests. Fourteen of these exclusions - almost 30 percent of the total - were granted over the objections of domestic producers that there was no legitimate need for such exclusions. Granting requests of this kind could significantly weaken the President's steel program. The American steel industry does not object to excluding steel products where there is a legitimate need for such exclusions. Indeed, domestic producers have already agreed to over 400 exclusion requests. The industry, however, strongly opposes excluding products where the exact product - or a functionally interchangeable equivalent - is available domestically. Such exclusions are not necessary for U.S. consumers, and serve only to weaken the President's trade remedy measure, which is an essential component of the President's comprehensive steel initiative. By undermining relief, these exclusions harm the domestic steel industry and its workers.

Thomas J. Usher, Chairman and CEO of United States Steel Corporation, explained that "The domestic steel industry has been careful to object only to exclusion requests for products that can be produced in the United States," further commenting that "granting exclusions for products that American steel companies can manufacture only serves to erode the trade relief implemented by the President." Mr. Usher further noted that "over 100 countries and a large number of products are already exempt from the Section 201 trade remedy," and that "relief cannot be effective if the USTR continues to grant unnecessary exemptions."

Bethlehem Steel's Chairman and CEO, Robert S. Miller, Jr., also voiced serious concern with the announcement of additional exemptions that were granted over the objection of the domestic steel industry. "I am now deeply concerned about the USTR's pattern of granting exemptions when the domestic steel industry has demonstrated that it is capable of producing the product or its functional equivalent" said Mr. Miller, further stating that "It is also essential that any approved exclusion include a volume cap based on prior year imports."

The industry also urges the Administration to strictly limit the volume of imports that may enter the U.S. market under an approved exclusion. Indeed, no party should be able to import more steel under an exclusion than it did the previous year. Failure to limit exclusions in this manner could significantly undermine the President's steel program.

For more information contact:

U. S. Steel
Mike Dixon
John Armstrong
(412) 433-6870
Bethlehem Steel Corporation
Robert W. Bilheimer
(610) 694-3711

Return to News Releases