INTRODUCTION

Factual Background

Initiation of Safeguards Investigation by the USITC

On 22 June 2001, the USTR requested the initiation of a safeguard investigation under Section 201 of the Trade Act of 1974 to determine whether certain steel products were being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing products like or directly competitive with the imported products.

Four broad groups of products were covered by this request:

A number of products were excluded from the request. These included wire rod and line pipe (covered by existing Section 201 relief or specifically excluded in the Section 201 relief), certain OCTGs, certain stainless steel products, certain semifinished steel products, certain carbon and alloy flat-rolled products and certain tin mill flat-rolled products.

The USITC initiated its investigation on 28 June 2001. Public notice of this investigation was published on 3 July 2001. It provided for hearings on injury commencing on 17 September 2001 and hearings on remedy commencing on 5 November 2001 and allowed for submissions of pre- and post-hearing briefs by interested parties.

The United States notified the initiation of the safeguard investigation to the Committee on Safeguards on 4 July 2001 and this notification was circulated to WTO Members on 9 July 2001.

USITC Injury Determination

Pre-hearing briefs on injury were filed by 10 September 2001 and hearings took place from 17 September 2001 to 5 October 2001. Post-hearing briefs were allowed from 27 September 2001 to 9 October 2001 for the various steel products under investigation.

To collect data, the USITC split the four broad product categories into 33 product classes: