Concerns of potential trade status change for Vietnam
T hirty- seven Bipartisan Members of the Congressional Steel Caucus, including myself, sent a letter to the secretary of commerce, Gina Raimondo, expressing concern about the department’s reconsideration of Vietnam’s non-market economy (NME) status in U.S. antidumping proceedings.
As the letter points out, Vietnam remains a topdown, government-controlled economy. The country practices steel dumping by flooding the U.S. with heavily subsidized steel in violation of international trade standards, which harms domestic production. Vietnam is also known to be a platform for Chinese steel to circumvent U.S. trade remedy orders. This malicious behavior should not be rewarded by a beneficial change of status.
In October, the Department of Commerce announced that it would begin reviewing Vietnam’s NME status. This announcement came shortly after Vietnam filed an official request to be considered a market economy. Commerce has 270 days to complete the review, which should occur in mid-July.
Vietnam has been injuring the American steel industry for years through unfair trade practices. Our government has a duty to protect American businesses and workers, and the Department of Commerce must reject Vietnam’s request. To grant Vietnam market economy status would be rewarding bad behavior and is a thumb in the eye to American steel.
The livelihoods of steelworkers and their families are dependent upon the full and fair enforcement of our U.S. trade laws, and we must do all we can to hold bad actors around the world accountable for unfair trade practices. As vice chairman of the Congressional Steel Caucus, I look forward to continuing to partner with all my colleagues to ensure that workers in steel-producing communities throughout our nation can compete on a level playing field.
Philip K. Bell, President of the Steel Manufacturers Association. said, “The SMA applauds the Congressional Steel Caucus for highlighting the devastating effect that granting Vietnam market economy status would have on American workers and American steel production. America’s industrial might relies on fair trade. If countries such as Vietnam, which has turned into one of the most harmful steel traders in the world, are granted market economy status, that puts American jobs and livelihoods at risk. It also destroys secure domestic supply chains in favor of countries that only succeed through government intervention or serving as a key cog in China’s belt and road initiative. We stand with the bipartisan members of the Congressional Steel Caucus in calling for Vietnam not to be granted market economy status.”
The letter is also supported by the following groups: Committee on Pipe and Tube Imports (CPTI), Steel Manufacturers Association (SMA), American Iron and Steel Institute (AISI), United Steel Workers (USW), Coalition for a Prosperous America (CPA), Alliance for American Manufacturing (AAM), and the Steel Tank Institute/Steel Plate Fabricators Association (STI/SPFA).
Rep. Rick Crawford
