CITAC, NFTC Remain Opposed to Proposal to Subsidize Companies Filing Trade Remedy Cases

Friday, 6 October 2000

The amendment circumvented standard congressional procedures and was adopted last-minute by a joint House-Senate conference committee this week, despite strong opposition by many members in both houses of Congress.

"This amendment is bad trade policy and should be rejected," said Frank Kittredge, NFTC President. "Aside from running afoul of WTO rules, the amendment would likely lead to confrontation with our trading partners, many of whom have already lodged complaints regarding the implementation of U.S. antidumping and anti-subsidy laws."

"U.S. companies are already adequately protected by U.S. trade laws," added Jon Jenson, Chairman of CITAC. "While proponents argue that the provision would be inexpensive, it would in fact require the government to pay $500 million per year to U.S. industries involved in trade remedy cases. Given this enormous cost and the bad precedent the amendment would set, the Byrd provision must be struck down."

CITAC is a growing coalition of companies and trade associations concerned with keeping channels of trade open so U.S. consuming industries have access to goods under world-competitive conditions. CITAC members include American Institute for International Steel, Consumers for World Trade, International Association of Drilling Contractors, Michelin North America Inc., National Retail Federation, and Precision Metalforming Association.

The National Foreign Trade Council was founded in 1914. Since then, NFTC has been a leading spokesman on behalf of the private sector for an open international trade and investment regime. NFTC's membership consists of 550 U.S. manufacturing corporations, financial institutions and other U.S. firms having substantial international operations or interests.

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