AISI Endorses Key Trade and Competitiveness Conclusions of U.S.-CHINA Commission Report

Washington, D.C. ¨CToday, the American Iron and Steel Institute (AISI), on behalf of its member companies, endorsed key trade and competitiveness-related conclusions of the November 2006 Annual Report to Congress of the U.S.-China Economic and Security Review Commission. In particular, stated Andrew G. Sharkey, III, AISI President and CEO, ¡°We agree that China has failed to comply with many of its World Trade Organization (WTO) obligations, five years after attaining WTO membership, and we endorse the key Commission conclusions that: China¡¯s industrial policy employs a wide variety of tools to promote favored industries; China uses a range of subsidies to encourage the manufacture of goods meant for export over the manufacture of goods meant for domestic consumption; China artificially prevents the value of its currency from rising with the economy and maintains an export-led trade policy; Decisions by the central government meant to comply with WTO rules sometimes are ignored in the provinces, and the regulations established in Beijing are not necessarily enforced elsewhere.¡± With regard to China¡¯s energy policy, Sharkey also noted that ¡°AISI agrees with the Commission that: China¡¯s energy strategy could substantially affect U.S. energy security; China¡¯s energy policies are distorting markets and destabilizing regions; China¡¯s energy use policies and the resulting air pollution are adversely affecting the air quality of the western United States; Some U.S. cooperative efforts with China on energy efficiency are useful and should continue.¡± In view of these and other important conclusions contained within this latest report, which are threatening significant long-term injury to the United States steel industry and the U.S. manufacturing base at large, Sharkey urged the Administration ¡°to review carefully the findings and recommendations of the November 2006 U.S-China Commission Report and to take action in the national interest where warranted.¡± AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 32 member companies, including integrated and electric furnace steelmakers, and 125 associate and affiliate members who are suppliers to or customers of the steel industry. AISI's member companies represent approximately 75 percent of both U.S. and North American steel capacity