Europeans OK Halving Steel Sales to U.S.

The Administration announced today that the European Community has agreed to reduce its sales of steel pipe and tube in the United States by about half during the next two years.

Under the agreement, the 10 European nations will reduce their combined share of the total U.S. market for these products from 14.6% during the first 10 months of 1984 to 7.6% in 1985 and 1986.

Pipe and tube accounts for about 10% of the steel, both domestic and foreign, that is used in the United States.

It was not directly covered in an October, 1982, “arrangement” in which Europe agreed to limit its overall exports of carbon steel to the United States for three years.

But at that time, there was a separate exchange of letters on pipe and tube. In the U.S. interpretation, this was supposed to limit European pipe and tube exports to a 5.9% share of the U.S. market. But there was no enforcement, and the ceiling was exceeded.

Last Nov. 29, the Administration unilaterally banned any further imports of European steel pipe and tube during 1984 and set a 5.9% limit for 1985. That resulted in an estimated 150,000 to 200,000 tons of European pipe and tube piling up in U.S. Customs warehouses.

Under the new agreement, 60,000 tons of this warehoused steel--roughly one normal month’s shipments--will be allowed to freely enter the U.S. market. The rest of the steel in warehouses may enter the market only by being charged against the 7.6% total limit.