1. President Trump’s Impact on the Steel Pipe Distribution Industry
Buy America, National Security and Other Mysteries
Presentation to
National Association of Steel Pipe Distributors Summer Conference
Philadelphia, June 16, 2017
Lewis Leibowitz
The Law Office of Lewis E. Leibowitz
Washington, D.C.

2. The Role of Trade in the U.S. Pipe Market
The Past
Steel pipe was made primarily by integrated steel producers, based in the Eastern United States
World War II saw national expansion to assist in the war effort
After the war, the national mills were privatized
With recovery, former enemies resumed steel pipe production (Germany, Japan)
Since the 1980s, other countries have joined in global production (Korea, Taiwan, China, others)
The Present
Steel initially became a globally traded commodity in 1959, with the steel strike
Imports grew as more producers appeared and became competitive
Integrated companies dis-integrated, most notably in pipe
With the proliferation of suppliers from all over the world, distribution enterprises increased in importance
The Future (?)
Buy America requirements
National security
Global safeguards
Trade agreements
The Law Office of Lewis E. Leibowitz

3. International Trade Measures Affecting Steel Pipe
Buy America Legislation
Original
Surface Transportation Act
Berry Amendment
Section 232
Section 201
Antidumping
Countervailing Duties
Buy America requirements
National security
Global safeguards
Trade agreements
The Law Office of Lewis E. Leibowitz

4. The Law Office of Lewis E. Leibowitz
Steel Imports--2016
Total Steel Imports 2016—30.1 MMT
Million Metric Tons (MMT)
Flat Products (41%)
Long Products (23%)
Semifinished (20%)
Pipe and Tube (14%)
Stainless Products (3%)
Five Largest Import Sources
Flat—Canada, Korea, Mexico, Vietnam, Germany
Long—Turkey, Canada, Japan, Mexico, Korea
Semifinished—Brazil, Russia, Japan, Mexico, Canada
Pipe—Korea, Canada, Mexico, Turkey, Japan
Stainless—Taiwan, Italy, Mexico, China, India
Buy America requirements
National security
Global safeguards
Trade agreements
Source: US Department of Commerce
The Law Office of Lewis E. Leibowitz

5. Trump and the Future of Steel Pipe Distribution
Themes
Steel production is under threat
China is a major danger to the future of steel
Policies to bring more production and jobs back to the United States
Is this true?
Scant evidence
Steel companies profitable
Steel imports have declined sharply since 2014, but not fast enough for domestic producers
Steel trade cases have sharply reduced imports from countries subject to AD/CVD orders
The Law Office of Lewis E. Leibowitz

6. The Law Office of Lewis E. Leibowitz
Why Now?
Buy America requirements
National security
Global safeguards
Trade agreements
The Law Office of Lewis E. Leibowitz

7. The Law Office of Lewis E. Leibowitz
AD/CVD Orders
Korea
Litigation
“special market situation”
Zeroing
WTO disputes
China
Steel Committee Negotiations on Capacity/Production
Non-market economy status
NAFTA
Renegotiation
Rules of origin
AD/CVD reviews
The Law Office of Lewis E. Leibowitz

8. National Security (section 232)
Decision is imminent (perhaps week of June 19)
Reports of disagreement among Cabinet officials regarding relief to be provided
Level of restrictions
Product coverage (will pipe be covered?)
Other issues
How long?
Country by country or global restrictions?
Exclusions—blanket or a process?
Not just steel—aluminum too
The Law Office of Lewis E. Leibowitz

9. The Law Office of Lewis E. Leibowitz
Buy America
Pipeline Exec. Order (Jan. 24, 2017)
Secretary Ross to issue report by July 21 (approximate date) on ways to encourage pipelines to have American-made steel
These are NOT federal government purchases but private purchases
State and local governments
State of Texas passed a bill recently on Buy American steel
Water projects exempt until 2019
Buy American-Hire American (April 20, 2017)
OMB to issue guidance to federal agencies regarding waivers—June 17
Federal policy to “maximize the use of goods, products, and materials produced in the United States”
The Law Office of Lewis E. Leibowitz

10. The Law Office of Lewis E. Leibowitz
Thank you!
Lewis
The Law Office of Lewis E. Leibowitz