Des Plaines, Ill.…In a March announcement to the metalcasting industry, American Foundry Society Inc. (AFS), Vice President Chuck Kurtti, Neenah Foundry, Co. (retired), called on metalcasting leaders to take an active approach to unite and shape the future of our industry. Continuing to fight against unfair trade practices in fragmented, uncoordinated actions will only result in defeats, said Kurtti, who also serves as the chairman of the AFS Trade Commission. The call for unification comes on the heels of President Bush’s determination that import relief against ductile iron waterworks fittings (DIWF) from China was not in the national economic interest of the U.S.
This unification will be critical as AFS continues its push for a Section 332 trade investigation on the metalcasting industry by the International Trade Commission (ITC).
President Bush’s ruling came after the ITC conducted a Section 421 investigation that found the DIWF imports from China increased rapidly and had caused both a market disruption and material injury to the domestic metalcasting industry. Despite a 6-0 vote by the ITC to back a Section 421 (which could result in tariffs against imported DIWFs), the Bush Administration rejected it.
“We believe the Waterworks 421 met all the criteria for which the rule was written by the fact that it received unanimous backing by the ITC and was passed along to the Administration with a recommendation for relief based on the proven criteria of harm,” Kurtti said. “We, as an industry, must find a way to unite, create a balance and define our future without expecting any support from new or existing rules and regulations available to govern our trade activities.”
Kurtti called the ruling a “defining decision” and said it sent a clear signal, “that our trading partners may use any practice necessary to gain market penetration without fear of retribution by this Administration enforcing new or present agreements, rules or regulations put in place to ensure a level and fair trade environment. The days of just ‘window dressing’ are over, and we now look to our leaders for positive direction to help us define the future and value of not only our industry, but also the critical mass of manufacturing in this country.”
In October 2003, the ITC instituted the 421 investigation at the request of McWane Inc., Birmingham, Ala., to determine whether DIWF from China were causing a market disruption. If instituted, the 421 would provide relief to U.S. industries if the investigation finds that Chinese products are imported into the U.S. in such increased quantities as to cause a market disruption.
President Bush’s reason for ruling against the Section 421 was based on evidence that concluded U.S. companies would gain little if tariffs or quotas were placed on Chinese DIWFs because other countries’ imports would quickly fill the void. President Bush added that import relief would cost U.S. consumers more than the increased income that could be realized by domestic producers.
“The circumstances of this case make it clear that the U.S. national economic interest would not be served by the imposition of import relief under Section 421,” President Bush said. “I remain fully committed to exercising the important authority granted to me under Section 421 when the circumstances of a particular case warrant it.”
For more information contact Dwight Barnhard, AFS executive vice president, at dbarnhard@afsinc.org or 800/537-2437. Headquartered in Des Plaines, Ill., AFS is a not-for-profit technical and management society that has existed since 1896 to provide and promote knowledge and services that strengthen the metalcasting industry for the ultimate benefit of its customers and society.
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