[Weekly Compilation of Presidential Documents Volume 37, Number 23 (Monday, June 11, 2001)]
[Page 853]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on a Multilateral Initiative on Steel

June 5, 2001

    This administration is committed to free trade as an engine of 
growth. As part of our free trade agenda, we are committed to ensuring 
that American industry and American workers can compete on a level 
playing field. That is why, today, I am announcing my intent to launch 
an initiative to respond to the challenges facing the U.S. steel 
industry. This initiative will be designed to restore market forces to 
world steel markets and eliminate the practices that harm our steel 
industry and its workers.
    The U.S. steel industry has been affected by a 50-year legacy of 
foreign government intervention in the market and direct financial 
support of their steel industries. The result has been significant 
excess capacity, inefficient production, and a glut of steel on world 
markets.
    My decision to pursue this initiative comes after extensive 
consultations by members of the Cabinet with our industry, our 
steelworkers, and interested Members of Congress. We have discussed the 
challenges facing U.S. steel manufacturers, and we understand that we 
have a critical stake in a healthy U.S. steel industry.
    Thus, I intend to take the following steps. First, I am directing 
the United States Trade Representative, in cooperation with the 
Secretary of Commerce and Secretary of the Treasury, to initiate 
negotiations with our trading partners seeking the near-term elimination 
of inefficient excess capacity in the steel industry worldwide, in a 
manner consistent with applicable U.S. laws.
    Second, I am directing the U.S. Trade Representative, together with 
the Secretaries of Commerce and the Treasury, to initiate negotiations 
on the rules that will govern steel trade in the future and eliminate 
the underlying market-distorting subsidies that led to the current 
conditions in the first place. Absent strict disciplines barring 
government support, direct or indirect, for inefficient steel-making 
capacity, the problems confronting the U.S. steel industry--and the 
steel industry worldwide--will only recur.
    We see these negotiations--and the goal of restoring market forces--
as being in our interest and in the interest of our trading partners and 
their steel industries. That is why we would like to work cooperatively 
with our trading partners in pursuing this initiative.
    Third, I am directing the U.S. Trade Representative to request the 
initiation of an investigation of injury to the United States industry 
by the International Trade Commission under section 201 of the Trade Act 
of 1974. This action is consistent with our WTO obligations.
    This three-part strategy, coupled with further restructuring of the 
U.S. industry, should help the industry meet the challenges it faces. I 
look forward to working together with the industry, the steelworkers, 
Congress, and our international trading partners in support of this 
important initiative.