WASHINGTON (AP) -- The Clinton administration has sided with U.S. stainless steel producers in their complaints of illegal trade practices by producers in six countries.
Jack W. Shilling, president of Allegheny Ludlum Corp., called Monday's rulings from the Commerce Department a vindication for the U.S. industry."We know from the marketplace that our allegations ... are true, and these decisions will help to correct the problems we have faced," he said.
The Commerce Department concluded that Belgium, Canada, Italy, South Africa, South Korea and Taiwan have illegally dumped stainless steel in the United States at prices below production costs or home-market prices.
Commerce found that Belgium, Italy and South Africa also gave producers unfair subsidies that effectively lowered prices.
Those countries face tariffs of up to 60 percent on that product if the independent U.S. International Trade Commission determines the practice has injured or threatens to hurt U.S. steel makers. The commission is to rule by May.
The Commerce Department finding applies only to a specialized steel product known as stainless steel plate in coils. It comes rolled up like carpet and is used in specialized tasks such as chemical processing, pollution control and petroleum refining.
Although the product makes up a small part of overall steel consumption, it is among the first of the dumping complaints to wind their way through the administration since steel import levels began to rise dramatically in 1997.
A much larger case involving hot-rolled carbon steel is pending before the department, with a final ruling due next month. Commerce already has issued preliminary rulings finding evidence that Japan, Russia and Brazil had engaged in illegal dumping.
The U.S. steel industry contends that low-priced imports have resulted in thousands of layoffs and three company bankruptcies. The House defied a presidential veto threat last week and passed legislation establishing quotas on foreign steel, although aides say stainless steel would not be covered.
According to the Commerce Department, imports of the stainless steel product from the six countries combined more than doubled from 1997 to 1998. U.S. steel makers contend they cannot compete when foreign governments offer subsidies or adjust their pricing to undercut the U.S. producers in their own market.
Italy faces the largest tariffs -- up to 60 percent. Producers in other countries face tariffs of at least 7 percent.
Any tariffs levied would effectively raise prices of foreign steel, theoretically making them closer to the price of a similar product made domestically.
Dan Mullaney, a lawyer for the main South African producer, said South Africa was an "innocent bystander" blamed for import surges caused by other nations.
Lawyers for other producers either had no comment or did not return telephone calls.
The complaint was filed by Allegheny Ludlum, Armco Inc. and J&L Specialty Steel Inc., all based in Pittsburgh, Lukens Inc. of Coatesville, Pa., and North American Stainless of Ghent, Ky., as well as by unions representing workers at those companies.