Commerce Department Issues Major
Dumping and Subsidy Margins
Against Imports from Brazil

For Immediate Release

Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax

July 7, 1999 -- The U.S. Department of Commerce today completed its investigations of hot-rolled steel imports from Brazil, issuing major dumping margins ranging from 42.12% to 43.4% percent and subsidy rates of 6.35% to 9.67%. The Department's final determinations confirm that subsidized imports from Brazil were sold at dumped prices in the U.S. market. The domestic industry supports the strong enforcement of U.S. trade laws in order to prevent further harm from unfairly traded imports.

The Department also announced its decision to enter into settlement agreements with Brazil to suspend its investigations. While pleased with the Department's final determinations that Brazilian steel imports have been significantly unfairly traded, our companies strongly oppose the Department's decision to settle these cases which we believe is contrary to applicable law. Our rights have simply been taken away from us. The dumping and countervailing duty orders should be put in place and additional duties collected as provided by law. Our companies continue to oppose suspension agreements where unfair trade practices have been found, and will fully pursue our legal rights to have these agreements rescinded.

The U.S. market continues to be extremely depressed by dumped and heavily subsidized steel imports. This has depressed prices, forced continued production cut-backs, reduced shipments and lowered operating rates. With the recent filing for bankruptcy protection by Gulf States Steel, five domestic steel companies are currently in bankruptcy. Our responsibility to our employees, our shareholders and our communities requires that we use all remedies available under the law to prevent further injury from all unfairly traded imports.

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