Steel Trade Policy: Section 232 Investigation by US Department of Commerce

Falls Church, VA (AIIS) – On April 20^th, the President signed a memorandum which directed the Secretary of Commerce to prioritize an investigation into the effects of steel imports on U.S. national security.

The investigation is being conducted under the provisions of Section 232 of the Trade Expansion Act of 1962 – a provision which has not been used since 2001. Section 232 authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States.

Section 232 investigations include consideration of

(a) domestic production needed for projected national defense requirements;

(b) domestic industry’s capacity to meet those requirements;

(c) the importation of goods in terms of their quantities and use;

(d) the close relation of national economic welfare to U.S. national security;

(e) the loss of skills or investment, substantial unemployment and decrease in government revenue; and

(f) the impact of foreign competition on specific domestic industries and the impact of displacement of any domestic products by excessive imports as well as other factors.

The Department of Defense is also involved in Section 232 investigations.

The Department of Commerce must report to the President within 270 days of initiation, and the report should focus on whether the importation of the articles in question – i.e., steel products – are in such quantities or under such circumstances as to threaten to impair the national security.

Courtesy : AIIS