North American steel producers welcomed the announcement of a North American Steel Strategy by Nafta Ministers as part of the Security and Prosperity Partnership (SPP) presented to Canadian Prime Minister Paul Martin, U.S. President George W. Bush and Mexican President Vincente Fox.

The Ministers also announced Nafta-wide initiatives on energy, manufacturing and transportation, as part of the SPP. North American steel producers are looking forward to working in partnership with their respective governments on these and other important issues.

Recognizing the strategic value of the steel industry, the North American Steel Strategy is focused on competitiveness and the long-term sustainability of North American steel production. Steel was mentioned as one of the principal sectors for increased cooperation among the three countries during the Leaders’ Summit on March 23, 2005 in Waco, Texas.

“We are very pleased with the leaders’ announcement today,” said Barry Lacombe, President of the Canadian Steel Producers Association (CSPA). “Our goal is a fair, market-based environment for efficient North American steel production, so we can keep steel and related investment, jobs and economic development on this continent. This is an important first step in the right direction.”

“The steel industry in North America believes that there are significant synergies to be gained from the development of cross-border pro-manufacturing policies,” said Thomas A. Danjczek, President of the Steel Manufacturers Association (SMA). “Our sector looks forward to making a positive contribution to the SPP initiatives on manufacturing, energy and transportation.”

“For many years, North American governments and steel producers have been speaking with one voice to the rest of the world in the OECD and in other forums, with the aim of eliminating trade and market-distorting interventions by offshore governments and producers,” said Andrew G. Sharkey III, President and CEO of the American Iron and Steel Institute (AISI). “The North American Steel Strategy recognizes the vital importance of having effective market-correcting measures and actions to address unfair trade.”

“North American steel producers pledge to continue to work closely with Nafta governments to help create and maintain the conditions under which distortion-free trade can expand in North America,” said Octavio Rangel Frausto, General Director of the Mexican Steel Producers Association (CANACERO). “We look forward to developing, with our respective governments, an agreed NASTC work plan to explore ways to facilitate, and reduce the costs of, intra-Nafta steel trade, including measures to improve border infrastructure.”

“It is especially noteworthy that the SPP ‘Steel Signature Initiative’ — and North America’s governments at the highest level — recognize the strategic importance of our sector,” said David A. Hartquist, Counsel to the Specialty Steel Industry of North America. “Steel is critical, not only to the manufacturing base and the economy as a whole in North America, but also to the national economic security and to the homeland security of the United States, Canada and Mexico.”

The North American Steel Strategy will be developed and implemented through the North American Steel Trade Committee (NASTC). Over the past two years, the NASTC has been a successful example of cooperation among North American governments and steel producers, as steel has become a model for how to work together productively to enhance cross-border cooperation on trade policy and other issues of common concern.

The North American steel industry supports the overall competitiveness, prosperity and security of North America. Steel producers in North America employ more than 1.5 million people through direct and related jobs, and contribute over U.S. $80 billion in annual sales revenue. The member companies of participating NASTC associations account for more than 95% of the carbon and specialty steel products made annually in North America.