Mexinox Usa, Inc.
Bannockburn, Illinois 60015
September 1, 2005

The Honorable E. Clay Shaw
Chairman
Trade Subcommittee
Committee on Ways and Means
1102 Longworth House Office Building
Washington, D.C. 20515

Dear Mr. Chairman:

I am writing on behalf Mexinox USA of Bannockburn, Illinois in favor of the passage of H.R. 1121, a bill that would repeal the Continued Dumping and Subsidy Offset Act, commonly known as the “Byrd Amendment.” 

Mexinox USA is the U.S. importer and distribution affiliate of ThyssenKrupp Mexinox.  Mexinox is the sole producer of stainless steel sheet in Mexico and is an important participant in the U.S. market for stainless steel sheet products.  The U.S. does not produce enough stainless steel sheet to satisfy domestic demand, and Mexinox helps make up this shortfall, preserving the competitiveness of American manufacturers that use stainless steel.  We are proud of our participation in the American economy; Mexinox is a responsible participant in this market and is the largest import source of these products.

The Byrd Amendment is a waste of government money and also distorts trade flows by encouraging petitioners to keep dumping orders in place longer than they otherwise would, and to include products in cases they would not otherwise be interested in.  The desire to obtain Byrd Amendment money drives these and other decisions in how cases are brought, how broad they are and how long they last. 

The government of Mexico, along with ten other countries, filed a case before the World Trade Organization (WTO) seeking to declare the Byrd Amendment a violation of WTO agreements.  This action was successful.  The WTO stated that the United States was to repeal the Byrd Amendment by December 27, 2003.  However, unfortunately this has not been done.

The time has come to rectify this.  The Government of Mexico, along with those of Japan, the European Union and Canada have already retaliated against U.S. exports to address the failure of the United States to repeal this law.  It is not only a violation of international agreements; it also is bad for the United States economy.

We would appreciate your placing these comments on the record of the Subcommittee.

Sincerely,

Adolfo Acevedo
Finance and Administration Manager