Steel Caucus Voices Concerns of Potential Trade Status Change for Vietnam

FOR IMMEDIATE RELEASE

Contact: Sara Robertson (Sara.Robertson2@mail.house.gov)

Steel Caucus Voices Concerns of Potential Trade Status Change for Vietnam

6/27/2024

Washington, D.C. – 37 Bipartisan Members of the Congressional Steel Caucus, led by Chairman Rick Crawford (AR-01) and Vice Chairman Frank Mrvan (IN-01) 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 top-down, 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,” Rep. Crawford said.

“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,” said Rep. Mrvan.

“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,” said Philip K. Bell, President of the Steel Manufacturers Association.

“As China continues to utilize Indo-Pacific markets to undercut American steel tariffs, STI/SPFA stands in strong support of the Congressional Steel Caucus’ letter to Commerce Secretary Raimondo urging the reconsideration of Vietnam as a ‘market economy,'” Tim O’Toole, executive director of the Steel Tank Institute/Steel Plate Fabrication Association (STI/SPFA), said. “By legitimizing Vietnam’s government-controlled economy that relies on aggressive subsidies to finance its steel marketplace, the Commerce Department would send a signal that developing countries can follow in Vietnam’s footsteps by dumping steel products into the United States and subsequently preventing domestic steel manufacturers across the supply chain from competing on a level playing field. We appreciate Representative Mrvan and Representative Crawford’s leadership on this issue and look forward to working with the Steel Caucus to continue pushing back against efforts to undercut American-made steel,” said Tim O’Toole, executive vice president of STI/SPFA.

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).