Global Steel Trade; Structural Problems and Future Solutions

New Players: China, Ukraine, and India
China
Through its accession to the WTO, China will be committing to important disciplines on subsidies. Under
the Administration’s China Enforcement Plan announced in May 2000, the Commerce Department has
established a China-specific subsidies monitoring team to help ensure that China abides by its WTO
subsidy commitments. The Administration has encouraged the OECD Steel Committee to organize a
special workshop with Chinese representatives on the state of the Chinese steel industry and has
encouraged China’s observer status in the Steel Committee.
Ukraine
In December 1999, the Commerce Department concluded a memorandum of understanding with Ukraine
offering the same type of technical assistance package currently under way with Russia. Commerce will
tailor the broader program to the specific needs of the Ukrainian government and producers.
India
The Subsidies Enforcement Office will continue to monitor the actions of the government of India, specifically
with respect to practices identified in this report, to ascertain whether subsidies are granted to the steel
industry and to ensure that financing for steel companies is undertaken in a market-driven manner.
Initiate Bilateral Dialogues on Steel with Additional Trading Partners
The President’s Steel Action Program stated that the Administration will launch bilateral discussions with
other countries that have contributed significantly to the steel import surge using information developed
through the Administration’s import and subsidy monitoring programs, and information from U.S.
producers and workers to develop strategies to address specific issues.
The Administration is concerned about imports of steel from Taiwan. Since 1998, Taiwan has been subject to
antidumping investigations on cold-rolled steel, stainless steel plate in coils and stainless steel sheet and strip
in coils. Aggregate imports of steel products from Taiwan have increased dramatically. Imports during 1999
were up 54 percent from 1998 and 328 percent compared to 1997. Imports during the first three months of
this year were up 159 percent compared to the same period in 1999. The Administration is formally
requesting bilateral consultations on steel trade with Taiwan authorities.
Reinvigorate the International
Steel Policy Agenda
Renovation of the OECD Steel Committee
For more than twenty years, the OECD Steel Committee has served as the primary international steel
policy forum. During that time, the structure of the industry and market conditions have changed
considerably. As a result, the committee should be reinvigorated and its operation made more resultsoriented
to address the key issues that foster instability in global steel trade.
Article 1 of the October 1978 Decision of the Council Establishing the Steel Committee charged the
committee to seek solutions to the cyclical and structural problems experienced by the global steel industry.
This original goal is still valid and important. In spite of recent constructive efforts on the part of the
committee, this goal is not being fully met.
Chapter 7: Avoiding Future Crises 183