August 2019 Volume 1

WASHINGTON UPDATE

FIAWebinar Recap Public Policy Update - 232 Trade Remedy for Imports of Steel Forgings By FIA Staff

On June 11, FIA’s Public Policy Committee held a webinar to raise the issue of a 232 trade remedy for imports of steel forgings. More than 40 FIA members and industry representatives participated. FIA staff has compiled the presentation highlights delivered by trade attorneys Jack Levy and Thomas Beline of Cassidy Levy Kent LLP. The webinar slides and audio recording are available to members on FIA’s website (www.forging.org) under the ‘Member Services’ tab as well as a full webinar transcript. Access to the documents requires membership and a login. Import Challenges Facing U.S. Forging Industry Some of the challenges forgers face are imports placing downward pressure on U.S. prices, which limit the ability of U.S. producers to implement cost-based price increases. Import volumes erode U.S. producers’ sales volumes and market share. These reduced U.S. production levels translate to reduced capacity utilization and higher fixed unit costs. Traditional trade remedies—such as antidumping and countervailing duty cases—are narrow in coverage and generally not a feasible solution for the U.S. forging industry. FIA’s webinar began with an overview of U.S. trade policy initiatives under President Trump, which includes Section 232 actions on steel, aluminum, autos and uranium; Section 301 actions on China; and the USMCA. The presenters next addressed the import challenges facing the U.S. forging industry, including the difficulty of small manufacturers mounting anti-dumping and countervailing dumping trade cases. FIA’s question to its membership is: Has the opportunity for a Section 232 trade remedy for imports of steel forging now arrived? If the answer is yes, the association and its members would engage in these next steps to drive the process forward: 1. Completion of an FIA survey to identify areas for further examination. FIA members are completing a diagnostic survey to identify product segments that are potential candidates for Section 232 relief. The completion rate and quality of information turned in will serve as a gauge for support frommembers. 2. Deep-dive assessment of relevant product segments. Members will confidentially submit their surveys to Cassidy Levy Kent LLP to identify unfair trade trends and the specific forgings affected. 3. Tollgate decision on whether and how to proceed. This

decision will be highly influenced by the number and quality of survey submissions. Assuming we have adequate data and there is a path forward, we would align on a budget for government relations and legal costs, begin work on a draft petition and vet the draft petition with the administration. FIA set a deadline date of July 12 to have the initial batch of surveys turned directly into Cassidy Levy Kent LLP. FIA will still accept completed surveys. Next Steps: Working with the administration If the FIA Board of Directors, through its Public Policy Committee, decides to move forward and a budget is established, the administrative process to file a Section 232 challenge is as follows: • File petition; Commerce Department initiates 232 investigation (in consultation with DoD). • Companies required to answer detailed questionnaires fromDepartment of Commerce. • Written briefs from interested parties submitted; hearing held and post-hearing briefs from interested parties presented. • Commerce to issue formal report and recommendations within 270 days after initiation. • Remedy phase (advocacy before White House). ºº Decision due within 90 days (assuming no extension), plus 15 days to implement (remedy may include tariffs, quotas, or tariff-rate quotas) ºº Report to Congress within 30 days of decision. Complete the Assessment of Impact of Imports of Steel Forging Products on National Security FIA, through Cassidy Levy Kent LLP, encourages members who want to get involved to complete this survey. The survey is available by contacting Jim Warren, President & CEO of FIA. For more information: FIA: James Warren: 216-978-2263 or jwarren@forging.org Cassidy Levy Kent: Jack Levy: 202-230-6630 or jlevy@cassidylevy. com

FIA MAGAZINE | August 2019 22