U.S to Withdraw Its Safeguard Measures Against Imported Steel

The Bush administration will announce its plan to withdraw its safeguard measures against imported steel originally designed to help shield U.S. steel makers on December 4 (local time), the White House officials said on December 3.

Last year, the Bush administration implemented safeguard measures, imposing 8 to 30 percent protective tariffs on imported steel from Europe, Asia, and South America, to give the troubled U.S. steel industry three years to regain a profitable footing. The U.S. steel industry has suffered from an international oversupply of steel and the sluggish U.S. economy.

Last month, the tariffs were ruled as illegal by the World Trade Organization, and the European Union, Japan, and other major steel exporters to the U.S. have pressured to impose punitive tariffs on U.S. products. South Korea has also considered imposing retaliatory tariffs on U.S products in case the Bush administration did not remove its safeguard measures.

While steel exporters to the U.S. hail the Bush administration’s decision to remove the hefty tariffs, they are closely watching conditions that might be attached on the withdrawal of the safeguard measures.

It is reported that the Bush administration will submit complementary measures to placate the local steel industry. Under these measures, the steel imports should be strictly watched and emergency duties will be imposed on steel imports if any unusual increase in imports from a particular country occurs. The Bush administration is also reviewing to relieve or share some pension burdens of the steel industry in an effort to help them regain its strength.

Seung-Jin Kim sarafina@donga.com