Mittal playing both sides of the fence
Mittal Steel is playing the roles of both complainant and victim in the steel tariff row in the US.
By PTI |
LONDON: Few companies in the world would find themselves in the position of Mittal Steel, which is playing the roles of both complainant and victim in the steel tariff row in the US.
Lawyers for the world's largest steel maker are engaged in a battle at America's International Steel Commission (ITC) against lowering of import tariffs on steel, while Luxembourg-based Arcelor that was taken over by Mittal in June is arguing before the ITC for an end to such tariffs.
Though the takeover will not be completed until next year, but the apparent contradiction exposes the difficulty for multinationals in building a coherent global strategy in a fractured world market, The Times reported.
The ITC hearings concern tariffs on foreign steel introduced in 1993 and renewed five years ago, in the wake of September 11 terror attacks.
America's steel mills then were suffering from a steel-price collapse and foreign imports. Famous names such as Bethlehem Steel were falling like skittles and, with the World Trade Centre's wrecked steel frame in the public mind, President George Bush imposed stiff anti-dumping penalties.
That explains Mittal's US business joining forces with other US steelmakers to confront America's motor manufacturers, who want an end to the import taxes.
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