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Steel Tariffs Are Needed to be Lowered from Auto Parts Industry

Some of the automotive suppliers from U.S.they have not felt relief from the existed
have demanded for exclusions from the highguidelines of the administration's exclusion
tariffs which were mostly agreed by the Bushprocess.The process has described mainly
administration and almost all companies filedspeciality forms of steel from abroad which
range from Tier 1 producers to the small Tiercould not been created or bought from the
3 Producers.Motor& Equipment ManufacturersU.S. market. The U.S. steel producers have
Association (also named MEMA), taking intoreached exclusion in the first tour for
account the possibilities of serious jobimporting slabs and flat-rolled steel
losses has required for an expand of existentproducts at low prices, while steel costumers
guidelines of the second stage of exclusionshave gained minimal relief. Moreover,
and 'to consider the critical factors ofcompetitors from abroad have gained a more
price and supply steel as part of itspowerful control over the U.S. market by
decisions''s.Despite the fact that MEMA isbuying steel at normal prices and by
prone to support an existent of domesticexporting finished or partially finished
steel industry, its tariffs had a strongproducts at lower tariffs.MEMA claims is
negative effect on the automotive suppliers,heavily concerned by the fact that high steel
according to Chris Bates the president ofprices will threaten the viability of a
MEMA. This supply constraints and thepowerful American manufacturing center'
increases in price which are generally awithout a secure supply of raw materials and
result of the high steel tariffs are nowa steady cost structure, U.S. auto parts and
obliging large Tier 1 Automotive suppliers tocomponents manufacturers will not be able to
start creating or buying components that theysecure future business and to ensure their
have previously created and purchased fromcompetitive stance in the global automotive
foreign sources.According to what MEMAindustry', MEMA claimed.MEMA will continue as
claims, a tendency of responding to thestrong supporter of the House Resolution,
increase of steel tariffs is to reduce theintroduced by representative Joe Knollenberg
production and to start thinking about theon Oct. 9. The legislation which happens to
movement of some manufacturing facilitiesbe bipartisan has gained support in the 107th
permanently abroad. MEMA also claim that theCongress and it has been introduced again in
shift of movement facilities and jobs totheHouse in 3003. This Resolution of
other countries where prices remain the sameKnollenberg's asks the president to ask that
is growing fast.The industry of auto partsthe International Trade Comission should
suppliers haven't benefited from the firstreconsider the effect of the tariffs on steel
round of the process of exclusion, taken careconsumption industries in U.S.The present
of by the Department of Commerce and the U.S.analysis must be included in the ITC's
trade Representatives's office.Taking intomidterm review of the administrations's steel
account the fact that the U.S. manufacturersprogram, which should be released by
of automotive parts and components reach aSeptember 2003, said MEMA.
price of 95 percent of the steel from U.S.A



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