Steel Quota Bill Defeated in Senate, Affects Food Equipment

The North American Association of Food Equipment Manufacturers (NAFEM) (Chicago, IL) lobbied on behalf of its industry and won in the U.S. Senate's June 22 decision to defeat the steel quota bill that would have restricted steel imports. NAFEM is comprised of more than 700 North American foodservice equipment and supply manufacturers, which provide products for food preparation, cooking, storage and table service. The legislation affects foodservice as well as larger-scale equipment used in the food and beverage industries.

"This is a significant decision for everyone in the steel-using industry," said Keith Jaffee, NAFEM president, Leggett & Platt. "We praise the Senate's decision to defeat this bill, which would have imposed quotas on steel imports. Free trade is essential to the U.S. manufacturing sector. Without it, domestic manufacturers lose their ability to operate effectively, and those effects are passed right down the line."

The bill, which was overwhelmingly passed by the house in March, would impose monthly quotas on steel shipments, and roll imports of steel back to the average monthly level of the 36 months ending with June 1997.

"We, along with several other steel-using industry organizations, have worked hard to get to this point, and it looks like our efforts were worthwhile," said Ed Kraus, NAFEM executive vice president. "Had this bill passed, we would have seen stainless steel shortages and far higher prices for our entire industry."

On March 25, 1999, Thomas Belot, president and CEO, The Vollrath Co., addressed the Senate Finance Committee on behalf of NAFEM. During his presentation, Belot emphasized that restricting free trade would mean lost jobs and productivity within steel-using industries.

While the quota bill is dead, other trade legislation is likely to emerge. The Senate Finance Committee last week proposed the outline of a major trade bill that could have an impact on steel and steel-using industries. NAFEM will continue to monitor these activities.

For more information, contact Peter Nettesheim at +1.312.464.6100 ext. 3726 or via e-mail at peter_nettesheim@sba.com.