US steel tariffs a step backwards

By Phil Boeyen, ShareChat Business News Editor

Wednesday 6th March 2002

A decision by the United States to impose tariffs of 30% on a range of steel imports has been labelled a backward step by Business NZ.

Chief executive, Simon Carlaw, says the move will hit NZ exporters as well as many other exporters outside NAFTA.

However he says the real risks may prove to be to the prospects for a new trade round and to an early and sustained recovery in both the US and global economies.

"This action again underlines the critical importance of reducing, not increasing barriers to trade, and for pursuing free trade arrangements with the United States."

Trade Negotiations Minister, Jim Sutton, says the introduction of tariffs is disappointing.

"The Government will take advice on what further steps can be taken to get this tariff removed, including, if necessary, whether the United States' actions are consistent with its obligations to New Zealand under international rules."

Mr Sutton described the US steel industry as a powerful lobbyist and says its steelworkers' union was the largest group protesting outside the World Trade Organisation meeting in Seattle in 1999 and it faced structural adjustment difficulties.

"However it is the New Zealand Government's view that the situation does not justify the imposition of import restrictions on steel imports from New Zealand."

Australia, which has been lobbying strongly against the tariffs, is up arms over the confirmation that they will go ahead and says it will fight to have them removed. It exports around A$450 million of steel to the US each year.

The BBC reports that the European Union plans to launch an immediate complaint with the World Trade Organisation and is threatening a trade war.

Comments from our readers

No comments yet