Congressional Steel Caucus voices concerns about potential Vietnam trade status change

The Congressional Steel Caucus is voicing concerns about a potential trade status change for Vietnam that could lighten steel tariffs.

Vietnam filed a request with the U.S. Department of Commerce that it be labeled a market economy for trade and tariff purposes. The federal agency is now reviewing that request and may soon reach a determination.

Congressional Steel Caucus members, including Vice Chairman Frank J. Mrvan, D-Highland, sent a letter to Secretary of Commerce Gina Raimondo urging the United States to continue treating Vietnam as a non-market economy when it comes to antidumping tariffs.

“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," Mrvan said. "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.”

The Congressional Steel Caucus argued that Vietnam still has a "top-down, government-controlled economy" and still dumps steel in the United States, dampening domestic production. It contends that Vietnam violates international trade laws by heavily subsidizing steel exports, and that it helps China circumvent U.S. steel tariffs.

"Vietnam has been injuring the American steel industry for years through unfair trade practices," Chairman Rick Crawford said. "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 United Steel Workers, Committee on Pipe and Tube Imports, Steel Manufacturers Association, American Iron and Steel Institute, Coalition for a Prosperous America, Alliance for American Manufacturing and the Steel Tank Institute/Steel Plate Fabricators Association also are urging the U.S. Department of Commerce to leave the current trade designation in place.

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