CHEERS FOR NIPPON: President Joe Biden has received some fresh political cover if he opts to allow the controversial takeover of U.S. Steel by Japan’s Nippon Steel. Three members of the Congressional Black Caucus said Nippon’s investments in U.S. Steel’s aging facilities in Gary, Indiana, Pittsburgh and Birmingham, Alabama, present “a unique opportunity” to boost the competitiveness of the U.S. steel industry, in a letter sent to the White House on Friday. The deal “will bolster the resilience and strength of key U.S. manufacturing sectors that rely on high-quality, affordable domestic steel. These sectors play a vital role in providing jobs and economic security, particularly for Black Americans and their communities,” wrote Reps. Jim Clyburn (D-S.C.), Maxine Waters (D-Calif.) and Bennie Thompson (D-Miss.). The letter came the same day as a separate call of support from Mike Pompeo, who served as secretary of State during Trump’s first administration, in an op-ed for the Wall Street Journal. “If the U.S. blocks this deal, China will perceive it as proof of a troubled U.S.-Japan relationship. It would be a gift to the Chinese Communist Party’s propaganda machine, fueling false narratives about the hypocrisy of the U.S. and the empty promises we offer our allies,” Pompeo wrote. Quick catch up: The sale of U.S. Steel to a Japanese company has drawn bipartisan opposition on the grounds that allowing a foreign manufacturer to buy U.S. Steel, which makes some products needed for defense materials, represents a risk to national security. Both Biden and Trump have signaled that they believe the purchase could present undue risks to national security, in a blow to what’s left of the free trade perspective in Washington. By the numbers: Nippon has announced $2.7 billion in additional investments in U.S. Steel facilities in August in addition to its $14.9 billion purchase price. And the company has more recently promised to pay a $5,000 bonus to every U.S. Steel employee once the deal is closed. Still, the pushback has put pressure on the interagency Committee on Foreign Investment in the United States to block the transaction on national security grounds. CFIUS’ latest deadline for the committee to give Biden its recommendations is on or around Dec. 23. Dispute continues: The Treasury Department, which chairs CFIUS told Nippon and U.S. Steel over the weekend that the agencies on the CFIUS panel remain at odds, according to a report from the Financial Times. Union view: “Anyone who has seen what Nippon has put in writing understands that its plans for the future of our facilities have not changed; ultimately, it intends to transfer steelmaking to U.S. Steel’s non-union facility in Arkansas,” said United SteelWorkers President David McCall. “All the promised investments in our facilities are conditional, allowing it to back out at any time for no other reason [than] changing business plans, and any job security Nippon may offer our members ends in 2026 with the expiration of our current contract,” McCall said. Doug has more here (for Pros!)
| 
No comments:
Post a Comment