| Some of the automotive suppliers from U.S. have | | | | percent of the steel from U.S.A they have not |
| demanded for exclusions from the high tariffs | | | | felt relief from the existed guidelines of the |
| which were mostly agreed by the Bush | | | | administration's exclusion process.The process has |
| administration and almost all companies filed range | | | | described mainly speciality forms of steel from |
| from Tier 1 producers to the small Tier 3 | | | | abroad which could not been created or bought |
| Producers.Motor& Equipment Manufacturers | | | | from the U.S. market. The U.S. steel producers |
| Association (also named MEMA), taking into | | | | have reached exclusion in the first tour for |
| account the possibilities of serious job losses has | | | | importing slabs and flat-rolled steel products at low |
| required for an expand of existent guidelines of | | | | prices, while steel costumers have gained minimal |
| the second stage of exclusions and 'to consider | | | | relief. Moreover, competitors from abroad have |
| the critical factors of price and supply steel as | | | | gained a more powerful control over the U.S. |
| part of its decisions''s.Despite the fact that MEMA | | | | market by buying steel at normal prices and by |
| is prone to support an existent of domestic steel | | | | exporting finished or partially finished products at |
| industry, its tariffs had a strong negative effect | | | | lower tariffs.MEMA claims is heavily concerned by |
| on the automotive suppliers, according to Chris | | | | the fact that high steel prices will threaten the |
| Bates the president of MEMA. This supply | | | | viability of a powerful American manufacturing |
| constraints and the increases in price which are | | | | center' without a secure supply of raw materials |
| generally a result of the high steel tariffs are now | | | | and a steady cost structure, U.S. auto parts and |
| obliging large Tier 1 Automotive suppliers to start | | | | components manufacturers will not be able to |
| creating or buying components that they have | | | | secure future business and to ensure their |
| previously created and purchased from foreign | | | | competitive stance in the global automotive |
| sources.According to what MEMA claims, a | | | | industry', MEMA claimed.MEMA will continue as |
| tendency of responding to the increase of steel | | | | strong supporter of the House Resolution, |
| tariffs is to reduce the production and to start | | | | introduced by representative Joe Knollenberg on |
| thinking about the movement of some | | | | Oct. 9. The legislation which happens to be |
| manufacturing facilities permanently abroad. MEMA | | | | bipartisan has gained support in the 107th |
| also claim that the shift of movement facilities and | | | | Congress and it has been introduced again in |
| jobs to other countries where prices remain the | | | | theHouse in 3003. This Resolution of Knollenberg's |
| same is growing fast.The industry of auto parts | | | | asks the president to ask that the International |
| suppliers haven't benefited from the first round of | | | | Trade Comission should reconsider the effect of |
| the process of exclusion, taken care of by the | | | | the tariffs on steel consumption industries in |
| Department of Commerce and the U.S. trade | | | | U.S.The present analysis must be included in the |
| Representatives's office.Taking into account the | | | | ITC's midterm review of the administrations's |
| fact that the U.S. manufacturers of automotive | | | | steel program, which should be released by |
| parts and components reach a price of 95 | | | | September 2003, said MEMA. |