Feb. 5, 2007 — Dan DiMicco, Chairman, President and CEO of Nucor Corp., has applauded the announcement by Susan Schwab, United States Trade Representative, that the United States has requested World Trade Organization (WTO) dispute settlement consultations with China over China's provision of prohibited subsidies to its manufacturing exports. "This is an encouraging first step in addressing the ways in which China illegally gives its exports an unfair advantage in international markets," Mr. DiMicco said.

"It is only the first step, though," Mr. DiMicco continued. "This request does not cover the vast majority of the massive domestic subsidies China provides to its steel industry and other manufacturers. Nor does it address China's gross manipulation of its currency, which provides Chinese exports with a huge advantage in international trade. Free trade is possible only if everyone follows the rules — and China hasn't.

WTO rules prohibit WTO members from providing their producers with certain types of subsidies, including export subsidies and subsidies that reward the use of domestic over imported products. In a notification to the WTO last year, China admitted that it continues to provide both types of subsidies.

Under the WTO dispute settlement procedures, a request for consultations is the first step in resolving the U.S. claim that China's provision of these subsidies violates WTO rules. If the two parties cannot agree to a resolution, the United States’ next step is to request that a WTO dispute panel decide whether China's actions violate the WTO rules. If a dispute panel finds a violation, it can order China to provide compensation to the United States by allowing the United States to impose higher tariffs on Chinese goods or take similar measures.

"Today's action will be meaningful only if it marks the beginning of an energetic effort by the United States to end these violations as well," Mr. DiMicco said. "In addition to this and future WTO actions, the United States must also use its own laws to respond to these practices. When it joined the WTO, China agreed to be subject to the application of countervailing duty laws. China is now trying to wiggle out of this obligation. The United States must hold China to this commitment as well."

Nucor and affiliates manufacture steel products, with operating facilities in nineteen states. Products include carbon and alloy steel bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. Nucor is the nation's largest recycler.