A group of U.S. steel users urged the U.S. government Tuesday to repeal a law that it says encourages American steelmakers to file antidumping suits.
The Consuming Industries Trade Action Coalition said it has launched the appeal against the so-called Byrd Amendment in a letter sent to the Office of the U.S. Trade Representative.
The group called the amendment "a threat to consuming industries" and said repealing the law would be "in the best interest of the nation's economy."
"The Byrd Amendment sets a policy of giving away government funds in a way that distorts the operation of our nation's antidumping and countervailing duty laws, encouraging petitions and discouraging trade, whether fair or unfair," the letter says.
In October, Congress passed a bill that critics say would encourage U.S. steelmakers to file antidumping suits by giving them the proceeds of antidumping duties levied on imports.
The administration of Bill Clinton opposed the bill but signed it into law as the amendment was part of a comprehensive budget bill.
The group, comprising steel users, retailers and farmers, said downstream industries in the United States will face shortages of specialized materials available only from foreign sources.
"The Byrd Amendment protects the companies that are not globally competitive, hurts those that are, runs counter to our obligation under the World Trade Organization and generally distorts the operation of our trade laws," Jon Jenson, chairman of the group, said in a statement.