Premier says US decision to impose tariffs on steel imports anti-competitive

6/3/02
Premier Geoff Gallop has described as backward and anti-competitive the decision by US President George Bush to impose tariffs on Australian steel imports.
Dr Gallop says the decision not only could lead to a trade war, but there is a real risk the decision will impact on demand for the State's iron ore exports.
Iron ore accounts for 16 per cent, or about $5billion, of the State's exports.
Western Australia's main markets for iron ore are in Asia and Europe, so the State's exports may be reduced to the extent that the steel industries in these countries suffer as a result of the US decision on tariffs.
"The risk is that there will be an indirect impact on WA due to falling demand for iron ore from our large trading partners who export steel products to the US," Dr Gallop said.
"It's about time nations like the US stopped penalising competitive countries like Australia.
"The US and other world powers should be showing the lead in free trade, not moving to a more protectionist stance. This is a backward step and could be bad for WA."
Yesterday (Tuesday) Mr Bush imposed tariffs of up to 30 per cent on steel imports for the next three years. The duties, ranging from eight per cent to 30 per cent, are effective on March 20, and cover 10 steel products, including flat-rolled steel from a long list of countries.
Canada and Mexico are exempt from the new tariffs because they are signatories to the North American Free Trade Agreement.
WA also exports about $24million of iron and steel products each year, with $3.4million going to the US.
Premier's office: 9222 9475