After years of depression, the U.S. service and supply industry is beginning to get some relief from Washington.
Manufacturers of oil country tubular goods got some help last month when the U.S. Trade Representative's office negotiated an agreement with major steel exporting countries.
USTR claimed the agreement marks the first time the exporting countries have agreed to remove government subsidies and incentives that helped their firms export steel.
WHAT ELSE WAS AGREED
Exporting countries also agreed to open their markets through the elimination of nontariff measures, including a phaseout of all their import quota programs. The agreement was signed with the 12 nation European Community, as well as Japan, South Korea, Brazil, Mexico, Australia, and Trinidad and Tobago.
In connection with the first pact, USTR negotiated with the countries a 2 1/2 year extension of a quota program that keeps steel imports from signatory countries below 19.1% of the volume sold in the U.S.
USTR said those voluntary restraint agreements should provide time for U. S. companies to complete modernization programs.
And by the time the agreements and the quota program expire, on Mar. 31, 1992, the U.S. hopes to have major provisions of an antisubsidy accord added to the General Agreement on Tariffs and Trade.
USTR said the quota extension focused in particular on oil country tubular goods. The U.S. market share for oil country tubular imports was reduced to 25.6% from 38.5% under the former agreement.
A problem with the quota extension is that it does not include some countries, like Argentina and Thailand, that are supplying a rising volume of U.S. OCTG imports.
A steel industry spokesman said during the U.S. oil boom large amounts of OCTG imports supplemented domestic production. But when the boom ended, foreign pipe still entered in large volumes.
U.S. manufacturers filed numerous "dumping" complaints, but they failed to stem the tide.
Meantime, a new law will make it easier for domestic companies, particularly oil and gas pipelines, to obtain foreign steel when U.S. manufacturers can't meet demand.
Companies had complained that the Commerce Department took too long to grant quota exemptions. Under the new law, Commerce is expected to act on requests in 15-30 days.
DOE INITIATIVE
The Department of Energy plans to release an "industry support plan" soon. It is designed to help the government and U.S. oil service and supply companies identify opportunities and overcome barriers to competition in international projects.
Deputy Energy Sec. W. Henson Moore wants to get U.S. embassies and agencies involved in helping American service and supply companies sell goods overseas (OGJ, Nov. 20, 1989, p. 40).
He said foreign governments and state owned oil companies often discriminate against private U.S. service and supply firms.
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