U.S. Wheat Associates (USW) sounds an alarm today in reaction to the Department of Commerce’s announcement that it has submitted to the White House the results of its Section 232 investigation of the national security implications of steel imports. Done at the prodding of a large segment of the U.S. steel industry, the investigation and its potential results likely ignore the implications for other U.S. sectors from extreme trade protections for commonly traded steel. The World Trade Organization’s national security exception from normal trade rules has traditionally been narrowly defined for truly exceptional products deemed necessary to maintain essential security interests. There is a good reason for this cautious approach, respected by virtually every country: common usage of it would undermine decades of carefully negotiated trade rules that foster peaceable global trade. Specifically, USW says that it believes that there is no greater national security interest for a country than being able to feed its people, which is best achieved through open markets. If the United States restricts steel imports under a national security claim, some countries may use the same pretense to restrict imports of U.S. wheat and other agricultural products.
USW worried steel industry demands could disrupt trade and threaten national security
