U.S. moves to protect its steel makers

U.S. Trade Representative (USTR) Robert Zoellick said Wednesday that the USTR might invoke Article 201 of the Trade Law, which would impose heavy import restrictions, to protect the American steel industry.

Arguing that this step would likely be more effective than any other measure to boost the faltering U.S. steel industry, Zoellick told the House Appropriation Committee, ``I have been discussing the matter with Finance Secretary Paul O’Neill and Commerce Secretary Don Evans.``

If the U.S. International Trade Committee (ITC) judges that the local industry is still in crisis even after Article 201 is invoked, U.S. President George W. Bush would be entitled to ban imports of related goods.

Former U.S. President Bill Clinton turned down the request of the U.S. steel industry to invoke Article 201 last year. Instead, he imposed retaliatory tariffs on certain steel goods from Korea, Japan, and Russia, all of whom were accused of dumping steel on the U.S. market.

Meanwhile, Zoellick called for the U.S. Congress to grant the ``fast-track authority`` to President Bush to facilitate speedy trade negotiations.

Noting that the United States would inevitably fall behind other countries in international trade negotiations unless the president is promptly granted the fast-track authority, he said, ``The administration is prepared to negotiate with Congress to resolve the disposal right issue.``