Domestic Manufacturers Object to Trade Remedies Provisions in Proposed U.S.-Korea Free Trade Agreement
Reuters
Domestic Manufacturers Object to Trade Remedies Provisions in Proposed
U.S.-Korea Free Trade Agreement
9 September 2009
WASHINGTON, Sept. 9 /PRNewswire-USNewswire/ — The Committee to Support U.S.
Trade Laws (CSUSTL) and its affiliated organizations, including some of the
most respected names in American manufacturing, today submitted comments to
the Office of the U.S. Trade Representative regarding the proposed U.S.-Korea
Free Trade Agreement. CSUSTL strongly objected to the antidumping (AD) and
countervailing duty (CVD) provisions of the section on trade remedies, citing
concerns that the proposed measures would result in changes to the related
legal processes, ultimately jeopardizing the ability of U.S. businesses to
seek relief when harmed by unfairly-priced foreign imports.
The United States and the Republic of Korea signed the U.S.-Korea Free Trade
Agreement on June 30, 2007 - it is now pending Congressional approval. "If
approved," according to a USTR statement, "the Agreement would be the United
States’ most commercially significant free trade agreement in more than 16
years."
"While there is no doubt that the Agreement offers some economic benefits to
U.S. industry," Mr. Hartquist, Executive Director of CSUSTL remarked, "there
is a strong risk that these U.S.-Korea Free Trade Agreement provisions could
seriously put at risk the integrity and enforceability of U.S. AD/CVD laws,
which should be at the core of U.S. trade policy. These proposed AD/CVD
provisions are not necessary. They could inject politics into future AD/CVD
cases involving South Korea and they would set a very dangerous precedent for
future free trade agreements the United States may enter with other
countries."
The Committee to Support U.S. Trade Laws is an organization of companies,
trade associations, labor unions, workers, and individuals committed to
preserving and enhancing U.S. trade laws. CSUSTL’s members span all sectors,
including manufacturing, technology, agriculture, mining and energy, and
services. CSUSTL is dedicated to ensuring that the unfair trade laws are not
weakened through legislation or policy decisions in Washington, D.C., in
international negotiations, or through dispute settlements at the World Trade
Organization and elsewhere.
The CSUSTL comments concerning the Free Trade Agreement with the Republic of
Korea and the list of member organizations follow this press release:
September 9, 2009
Delivery Online
Carmen Suro-Bredie
Chairman, Trade Policy Staff Committee
Office of the U.S. Trade Representative
600 17th Street, N.W.
Washington, D.C. 20208
Re: Comments Concerning Free Trade Agreement With the Republic of Korea
Dear Ms. Suro-Bredie:
These comments are timely submitted in response to the notice, Request for
Comments
Concerning Free Trade Agreement With the Republic of Korea, 74 Fed. Reg.
37,084 (July 27, 2009). The Committee to Support U.S. Trade Laws (CSUSTL) and
its affiliated organizations (see enclosed membership list) are united in
objecting strongly to the antidumping (AD) and countervailing duty (CVD)
provisions of the section on trade remedies in the proposed U.S.-Korea Free
Trade Agreement (KORUS).
CSUSTL supports the preservation, defense, and enhancement of vital U.S. laws
against dumped and subsidized imports. We oppose any weakening of U.S. trade
laws, whether through negotiation or legislation.
CSUSTL acknowledges that the Bush Administration remained firm in its
resistance to a primary objective of the Government of South Korea, which was
to use the KORUS to modify, and thereby weaken, U.S. AD/CVD laws. The KORUS
trade remedies section would not require changes to U.S. AD/CVD laws, and each
party would retain its rights and obligations under the WTO’s relevant
agreements. Rather, our concern is that the AD-CVD part of the KORUS trade
remedies section would result in changes to the related legal processes with
regard to AD-CVD in three key areas: (1) pre-initiation notification and
consultation requirements; (2) undertakings; and (3) establishment of a
bilateral Committee on Trade Remedies. The CSUSTL and its members strongly
object to all three of these AD-CVD provisions in the proposed KORUS.
— The notification and consultation provision would delay and improperly
politicize the consideration of a trade remedy petition filed by a
U.S.
industry in a process that is already transparent and open to all
parties. We are particularly concerned about the application of this
provision to an antidumping case.
— The provision on undertakings would encourage the use of suspension
agreements and the injection of foreign governments into the trade law
process, after the point where a domestic industry has already
invested
significant time and effort in a trade remedy investigation. As with
the
consultation provision, we are particularly concerned about the
application of this provision to an antidumping case.
— The provision to establish a bilateral Committee on Trade Remedies is
unprecedented and unnecessary and would provide additional
opportunities
for the Government of South Korea to weaken U.S. trade law
enforcement.
In sum, there is a strong risk that these KORUS provisions could seriously
jeopardize the integrity and enforceability of U.S. AD/CVD laws, which should
be at the core of U.S. trade policy. These AD/CVD provisions are not
necessary. They could inject politics into future AD/CVD cases involving South
Korea. Lastly, they would set a very dangerous precedent for future free trade
agreements the United States may enter into with other countries.
Very truly yours,
David A. Hartquist
Executive Director
The Committee to Support US Trade Laws (CSUSTL) and the following member
organizations endorse the positions set forth in the attached document:
AFL-CIO
Allied Tube & Conduit
Amalgamated Sugar Company
American Coke & Coal Chemicals Institute
American Corn Growers Association
American Fiber Manufacturers Assn.
American Furniture Manufacturers Committee for Legal Trade
American Iron and Steel Institute
American Maritime Officers
Ameristeel Bright Bar
AMT-Association for Manufacturing Technology
Anvil International
Associated Industries of Massachusetts
Automotive Aftermarket Industry Association
Carmeuse Lime & Stone
Carpenter Technology Corporation
California Fresh Garlic Producers Association
California Cut Flower Commission
Candle-Lite Division of Lancaster
Colony Corp.
Chicago Fire Brick Division of Allied Mineral Products, Inc.
China Currency Coalition
Cleveland-Cliffs, Inc.
Coalition for Fair Lumber Imports
Cold Finished Steel Bar Institute
Committee on Pipe & Tube Imports
Communications Workers of America
Copper & Brass Fabricators Council
Corey Steel Company
Crawfish Processors’ Alliance
Dakota Resource Council
Fair Atlantic Salmon Trade
Falcon Foundry
Fleming, Chuck F. (North Dakota Agriculture Committee)
Floral Trade Council
Florida Farmers, Inc.
Florida Fruit & Vegetable Association
Florida Tomato Exchange
Flower Growers of Puget Sound
FMC Corporation
Globe Metallurgical Inc.
Independent Cattlemen of Texas
Industrial Heating Equipment Association
Industrial Packaging Alliance of NAS
Int’l Brotherhood of Electrical Workers
JIT Terminal, Inc.
Johnson, Roger (North Dakota Agriculture Committee)
Kansas Cattlemen Association
Krueger Steel and Wire Co.
Kuster, Louis (Farmer)
Lake Carriers’ Association
Libbey, Inc.
LMP Steel & Wire Company
Lumi-lite Candle Co., Inc.
Manufacturers for Fair Trade
Micron
Milwaukee Wire
Montana Cattlemen’s Association
Municipal Castings Fair Trade Council
National Candle Association
National Cotton Council
National Council of Textile Organizations
National Farmers Organization
National Farmers Union
National Lime Association
National Textile Association
Nelsen Steel Company LP
Nevada Livestock Association
NewPage Corporation
New Process Steel
North Dakota Farmers for Profitable Agriculture
Nucor Corporation
PMC Specialties Group, Inc.
Polyethylene Retail Carrier Bag Committee
R-CALF United Stockgrowers of America 2
Safelite Glass Corp.
South Dakota Stockgrowers’ Association
Southern Shrimp Alliance
Southern Tier Cement Committee
Soybean Producers of America
Specialty Steel Industry of North America
Steel Manufacturers Association
Stupp Bros. Bridge & Iron Company
Sunblest Mgmt. LLC
The Timken Company
Thoeny Farms, Inc.
Thompson Steel Company, Inc.
United Steelworkers
U.S. Beekeepers
U.S. Business & Industry Council
U.S. Steel
Vaughn-Bassett Furniture Company
Village Farms
Ward Manufacturing, Inc.
Western Organization Resource Council
SOURCE Committee to Support U.S. Trade Laws
