Author: Paul Ploumis
12 Feb 2015 Last updated at 01:11:32 GMT
SEATTLE (Scrap Monster): The American Iron and Steel Institute (AISI) extended strong support to the legislation to address the trade-distorting practice of currency manipulation. The bill addresses the unfair trade practice of currency manipulation that severely impacts American manufacturing industry including steel sector.
According to Thomas J. Gibson, President and CEO, AISI, currency manipulation continues to put US steel industry and other manufacturers in the country at a disadvantage against foreign competitors. The legislation calls for trading partners to adhere to WTO obligations and also has provisions to hold them accountable in case of any violation. Also, the bill intends to protect the domestic industry from injuries caused by currency manipulation. It allows U.S. businesses to utilize the existing countervailing duty law to address the unfair trade advantage given to imports that benefit from currency manipulation.
AISI notes that the dumped and subsidized imports into the country have surged to record levels during recent years. The market share of finished steel imports has taken a big leap. The market share jumped to 28% in 2014 when matched with the market share of 23% in 2013. The Institute noted that it is not against opening up markets through various trade initiatives. However, the administration must also ensure that strong legislations are in place to prevent unfair practices such as currency manipulation.
Earlier during last summer, AISI had partnered with the American Automotive Policy Council (AAPC) and the National Council of Textile Organizations (NCTO) to organize a road show on currency manipulation.