From: ndallen@r-node.pci.on.ca (Nigel Allen)
Subject: Stelco says: Study reveals anti-dumping actions put U.S. jobs at risk
Organization: Echo Beach, Toronto
Date: Thu, 28 Jan 1993 04:34:00 GMT

Here is a press release from Stelco Inc.

 Study Reveals Anti-Dumping Actions put U.S. Jobs at Risk
 To: National and Business desks, Trade Writer
 Contact: Don Belch, 202-333-7400, or Bob Ballantyne, 416-528-2511,
          both of Stelco Inc., or Susan Wysoki, 202-944-5034

   WASHINGTON, Jan. 27 -- The U.S. economy stands to lose jobs 
and investment if free trade in steel products is impeded
by anti-dumping actions and tariff barriers, according to a study
released today by Stelco Inc., the largest Canadian-based steel
producer.
   United States steel producers filed anti-dumping complaints
against 21 countries, including Canada, in June 1992.  The complaints
have been investigated by the United States Commerce Department which
is expected to announce its preliminary determination today.
  The study, conducted by Pennsylvania-based AUS Consultants,
examined the potential economic impact on the United States if steel
trade from Canada is restricted by the inclusion of Canada in the
anti-dumping complaints.  The report found that Canadian steel
companies contribute far more to the U.S. economy in the form of
purchases of raw materials used in steel production, direct
investments, joint operating ventures and most importantly, jobs for
Americans, than the value of steel sold into the U.S. by Canadian
steel companies.
   These contributions to the U.S. economy will be jeopardized if
Canadian companies are excluded from the U.S. by the imposition of
dumping margins and they decide to purchase and invest elsewhere.
   Including Canada in the complaints violates the objectives of the
Canada-U.S. Free Trade Agreement which took effect in 1989, the study
said.  This agreement was intended to reduce or eliminate tariffs and
trade barriers to form an integrated North American market.
   The complaints also completely ignore current market realities,
the study said.  The Canadian and U.S. steel industries serve one
integrated North American market.  To serve this market, steel
crosses the border in both directions thousands of times every week.
Raw materials for steel production and manufactured steel products
included in the complaints have also been able to travel freely
across the border.
   The study showed that thousands of U.S. workers' jobs would be at
risk if Canadian producers reduced their direct investment in the
United States or sourced their material elsewhere.
   Other key findings of the AUS Consultants' study were:
   -- Canadian flat rolled steel companies spend an annual average of
$418 million in eight states for coal, coke and iron ore. This
spending supports $830 million in gross state output, $220 million in
household income and is ultimately responsible for 7,774 jobs.
   The states that benefit most from this trade are West Virginia,
Kentucky, Virginia, Michigan, Ohio, Minnesota, Pennsylvania and
Indiana.
   -- Canadian steel companies spend approximately $476 million on
direct investments and joint ventures in the United States. This
amount includes spending on equipment, wages, utilities, state and
local taxes, which would not take place if the Canadian steel
industry stayed home.
   The $476 million supports $1 billion in gross state output in 20
states throughout the eastern and central United States,
$300 million in household income and an additional 10,561 jobs.
   -- The economic benefits are over and above the value of U.S.
produced steel sold in Canada, where U.S. companies represent about
60 percent of total steel imports.
   -- Canada buys more U.S.-produced steel and steel-related
commodities than the value of U.S. steel purchases from Canadian
producers.
    * The United States has a positive balance of trade with Canada
      in steel and steel related commodities.
    * Over the past five years Canadian flat rolled steel
      companies, on average, purchased $418 million each year
      in raw materials from the United States.
    * The Canadian Steel Industry imports 4.7 million tons of
      coal, with a value of approximately $222 million, for coke
      plants.
    * Canadian steel producers also import 465,000 tons of
      coke each year valued at about $46 million per year.
    * The Canadian steel industry annually buys 4.6 million
      tons of iron ore, with a value of $157 million, from the
      United States.
   -- The anti-dumping action would likely impede the Canadian
industry's ability to cooperate and supply product during production
shortfall.  This could result in increased product costs or
unavailability at critical times.
   ------
   For further information and to receive copies of the AUS
Consultants study, please contact:

   Washington D.C.:
   Don Belch,  director, government relations, Stelco Inc.,
202-333-7400;
   Susan Wysoki, 202-944-5034

   Hamilton, Ont.:
   Bob Ballantyne, manager public affairs, Stelco Inc., 416-528-2511

 -30-
-- 
Nigel Allen, Toronto, Ontario    ndallen@r-node.pci.on.ca
Newsgroups: soc.culture.canada