Upset over India not fulfilling its commitment to check its surging stainless steel exports, the US steel industry has asked the administration to take protective measures including hike in import duty.
"It is time for action. India is wrecking havoc in the US market," said Paul Kelly, chairman of Speciality Steel Industry of North America and president and chief executive officer of Slater Steel, Inc said in a letter to US President George W Bush.
At present Indian stainless steel is exempt from US steel import relief programme, which allows the government to take protective measures, including increasing import duty and tariff rate quota.
The Indian government and its steel producers, the letter added, have not lived up to their commitments that the surge would end beginning January.
This commitment was made by Indian government representative to the US state delegate Robert Zoellick during consultations late last year.
Imports of these stainless steel products in January and February 2003 were triple the monthly average in 2001, and about 37 per cent greater than 2002, a year in which imports surged dramatically.
"Imports of stainless steel angle alone were up by 635 per cent over the 2001 monthly average. Ninety-nine per cent of all stainless steel angle imports in February were from India. Commerce Department data shows requests for import licenses from Indian producers remaining at extraordinarily high levels," it added.
The letter urges the US administration to add stainless steel bar, angle rod and wire imported from India to steel import relief programme "promptly".
"Our members' jobs are being lost because of the irresponsible behavior of the Indian government and its steel producers," said Leo Gerard, international president of United Steelworkers of America.
"There could not be a clearer case for action, and we respectfully urge the President to save these valuable jobs by including India under his programme," it said.
During the last two weeks, the letter released by the industry on Thursday said, US Government delegation travelled to India and again discussed this issue with the Indian representatives.
"We understand that this time, no commitment was made by the Indians nor was there any acceptance of responsibility for the surge. We can only assume that the surge from India will continue and thus undermine the relief you intended for this industry," it added.
Asking "prompt" inclusion of these steel products in the relief programme, the letter claimed India's "abuse" of its exclusion from the programme on stainless products is the "most egregious" example of developing countries undermining the effectiveness of the programme, "but it is by no means the only one."
Including stainless steel long products from India within the programme now will send a strong message to all such countries that the US is committed to defending the effectiveness of this programme, it added.
