[Congressional Record Volume 144, Number 147 (Thursday, October 15, 1998)]
[House]
[Pages H10958-H10965]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        REGARDING STEEL IMPORTS

  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I move to suspend the rules 
and agree to the resolution (H. Res. 598) calling on the President to 
take all necessary measures to respond to the surge of steel imports 
resulting from the financial crises in Asia, Russia, and other regions, 
and for other purposes.
  The Clerk read as follows:

                              H. Res. 598

       Whereas the current financial crises in Asia, Russia, and 
     other regions have involved massive depreciation in the 
     currencies of several key steel-producing and steel consuming 
     countries, along with a collapse in the domestic demand for 
     steel in these countries;
       Whereas the crises have generated and will continue to 
     generate surges in United States imports of steel, both from 
     the countries whose currencies have depreciated in the crisis 
     and from steel producing countries that are no longer able to 
     export steel to the countries in economic crisis;
       Whereas United States imports of finished steel mill 
     products from Asian steel producing countries--the People's 
     Republic of China, Japan, South Korea, India, Taiwan, 
     Indonesia, Thailand, and Malaysia--have increased by 79 
     percent in the first 5 months of 1998 compared to the same 
     period in 1997;
       Whereas year-to-date imports of steel from Russia now 
     exceed the record import levels of 1997, and steel imports 
     from Russia and Ukraine now approach 2,500,000 net tons;
       Whereas foreign government trade restrictions and private 
     restraints of trade distort international trade and 
     investment patterns and result in burdens on United States 
     commerce, including absorption of a disproportionate share of 
     diverted steel trade;
       Whereas the European Union, for example, despite also being 
     a major economy, in 1997 imported only one-tenth as much 
     finished steel products from Asian steel producing countries 
     as the United States did and has restricted imports of steel 
     from the Commonwealth of Independent States, including 
     Russia;
       Whereas the United States is simultaneously facing a 
     substantial increase in steel imports from countries within 
     the Commonwealth of Independent States, including Russia, 
     caused in part by the closure of Asian markets;
       Whereas the United States, through the International 
     Monetary Fund, generously participates in a bailout of the 
     crisis countries on terms that do not deter and in fact 
     encourage them to export their way out of the crisis; and
       Whereas there is a well-recognized need for improvements in 
     the enforcement of United States trade laws to provide an 
     effective response to such situations: Now, therefore, be it
       Resolved, That--
       (1) in accordance with rule IX, clause 1, of the Rules of 
     the House of Representatives, it is the sense of the House of 
     Representatives that its integrity has been impugned by the 
     failure of the executive branch to expeditiously enforce 
     title VII of the Tariff Act of 1930 in response to the surge 
     of steel imports resulting from the financial crises in Asia, 
     Russia, and other regions; and
       (2) the House of Representatives calls upon the President--
       (A) to immediately review, for the 10-day period beginning 
     on the date of the adoption of this resolution, the entry 
     into the customs territory of the United States of all steel 
     products that are the product or manufacture of Australia, 
     China, South Africa, Ukraine, Indonesia, India, Japan, 
     Russia, South Korea, or Brazil;
       (B) if, after the 10-day period described in subparagraph 
     (A), the President finds that the Governments of Australia, 
     China, South Africa, Ukraine, Indonesia, India, Japan, 
     Russia, South Korea, or Brazil are not abiding by the spirit 
     and letter of international trade agreements with respect to 
     imports of steel products into the United States, to 
     immediately impose a 1-year ban on the imports of all steel 
     products that are the product or manufacture of Australia, 
     China, South Africa, Ukraine, Indonesia, India, Japan, 
     Russia, South Korea, or Brazil;
       (C) to establish a task force within the executive branch 
     to closely monitor imports of steel products into the United 
     States from other countries to determine whether or not 
     international trade agreements are being violated; and
       (D) not later than January 5, 1999, to report to Congress 
     on any other actions the President has taken, or intends to 
     take, to ensure that all trading partners of the United 
     States abide by the spirit and letter of international trade 
     agreements with respect to imports of steel products into the 
     United States.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania (Mr. English) and the gentleman from Illinois (Mr. Crane) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania (Mr. English).
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I ask unanimous consent 
that I be allowed to yield 10 minutes to the gentleman from Ohio (Mr. 
Traficant) and ask that he be allowed to further yield that time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.


                             General Leave

  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I ask unanimous consent 
that all Members may have 5 legislative days within which to revise and 
extend their remarks and include extraneous material on the resolution, 
House Resolution 598, now under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield myself 1\1/2\ 
minutes.
  Mr. Speaker, I rise today in support of House Resolution 598. This 
resolution calls on the administration to act. That is exactly what 
this issue really boils down to. We in Congress can look at this issue 
all we want, but without the administration enforcing the laws that we 
pass, it will be for naught.
  This resolution is in response to the crisis facing the U.S. steel 
industry. But it is not just steel. It is not just the 100,000 jobs 
that are directly related to the steel industry that may be affected by 
this growing crisis. It is also about the many other industries that 
may similarly face import challenges that will arise from the financial 
crises around the world. This issue is not about protectionism. On a 
level playing field, American steel producers can compete with anyone 
in the world. The real issue is whether we are prepared to regard with 
indifference the wholesale dumping of subsidized and devalued foreign 
steel products into our domestic market and whether our basic 
industries are allowed to compete in a marketplace with rules, or a 
Hobbesian state of nature.
  I urge my colleagues to vote for this resolution as a means to send a 
powerful message to our trading partners that Congress will not 
tolerate predatory trading practices and a strong message to the 
Clinton administration that the time has come for concrete action to 
protect American jobs.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume. I 
rise in opposition to H. Res. 598 which calls upon the President to 
impose an import ban on steel products from 11 steel producing 
countries. While I support using our trade laws to address the question 
of whether steel is being traded unfairly resulting in injury to the 
U.S. industry and its workers, I oppose H. Res. 598 because it would 
circumvent this established process in violation of our obligations in 
the World Trade Organization.
  The normal procedure provided under law for U.S. industries to seek 
relief from dumped imports begins with the domestic industry filing an 
antidumping petition with the Commerce Department. The law in this area 
has been developed in compliance with U.S. obligations in the 
Antidumping Code under the WTO.
  H. Res. 598 not only violates the procedures established under U.S. 
law for making dumping determinations, it calls for action, 
specifically an outright import ban, that is well beyond the remedy 
prescribed in this situation. The action proposed by H. Res. 598 would 
make us vulnerable to challenge in the WTO and possible retaliation by 
our trading partners against U.S. exports in their own markets, a 
completely counterproductive result. Moreover, noncompliance with our 
own antidumping procedures makes it more difficult for us to convince 
our trading partners not to erect arbitrary barriers

[[Page H10959]]

to U.S. exports that they consider undesirable. As Ben Franklin rightly 
pointed out, ``A good example is the best sermon.''
  Recently I understand that the U.S. steel industry filed a number of 
antidumping petitions with the Commerce Department in compliance with 
U.S. law. I would encourage them to continue to pursue relief 
consistent with U.S. law. Passage of H. Res. 598, however, undermines 
U.S. interests and objectives in the WTO and puts at risk U.S. exports 
in other sectors.
  I urge my colleagues to oppose H. Res. 598.
  Mr. Speaker, I reserve the balance of my time.
  Mr. TRAFICANT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan (Mr. Bonior) the distinguished minority whip.
  Mr. BONIOR. I thank my colleague for yielding time. Mr. Speaker, all 
across the United States, from the mighty foundries of the Monongahela 
Valley to the mills in Gary, Indiana, the men and women who make the 
steel that makes America strong are in danger of losing their jobs. 
They are in danger of losing their jobs because foreign steel is being 
dumped into the United States, dumped below cost. It is the same old 
story. We have heard this before. While a lot of these countries set 
quotas to limit the import of U.S. steel, we have an open market. Of 
course the result is America has become a dumping ground.
  Have we not seen this happen before? I have seen it happen in autos, 
I have seen it happen in agriculture products. In steel, Russia, Korea, 
Japan, Indonesia, these and other countries are flooding the United 
States with cheap steel.

                              {time}  1515

  Just over the past year imports from Russia rose 45 percent, from 
Korea they jumped 9 percent. Japan, they doubled. Imports from 
Indonesia tripled. Their economies are in such shambles and they are so 
desperate for dollars that they are willing to sell their steel for 
less than it cost them to produce.
  Mr. Speaker, it is wrong, it is illegal, and we will not allow it to 
continue.
  The United States should do what it can to help these countries 
return to prosperity; it is in our interests. But this does not mean, 
it does not mean sacrificing American jobs to do so, and we are talking 
about 100,000 plus jobs here.
  There are steel workers in my State of Michigan right now that are 
doing well, but they see what is happening, and they see the oncoming 
typhoon and the oncoming storm out in the Pacific. They want to keep 
their jobs. Layoffs have begun.
  Enough is enough. We have got to take strong action to guarantee a 
fair market and save our steel industry. Tens of thousands of jobs are 
at risk. We need action today, not a year from now, not a few months, 
but today.
  Stop the illegal dumping and support the resolution of my colleague.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 2 minutes to the 
gentleman from Ohio (Mr. Regula), probably the most aggressive leader 
in this body on this issue and the chairman of the Congressional Steel 
Caucus.
  Mr. REGULA. Mr. Speaker, I thank the gentleman for yielding this time 
to me, and first I would like to commend the gentleman from Alabama 
(Mr. Aderholt) for all of his work with the Congressional Steel Caucus 
to protect steel jobs in the United States. I understand that he will 
support H. Res. 598 today, and certainly I will, and I urge all my 
colleagues to do so.
  This resolution calls on the President to take all necessary 
measures. What are these? The tools are there.
  One, the most significant and far-reaching powers under the 
International Economic Emergency Powers Act. Under this act, the 
President may block imports to deal with any unusual and extraordinary 
threat to the national security, foreign policy or the economy of the 
United States if he declares a national emergency, and this is a threat 
to our economy.
  Two, under the anti-dumping laws the President may impose anti-
dumping duties that equal the amount of dumping if injury to the United 
States industry is shown, and these duties may be imposed retroactively 
if the administration finds critical circumstances which they can do; 
and B, the President may accelerate the statutory deadlines for 
determining whether dumping exists so that duties may be imposed 
sooner.
  Three, under the countervailing duty law the President may impose 
countervailing duties that equal the amount of any subsidy provided by 
the foreign government if injury to the U.S. industry is shown, and 
this injury is not only to the U.S. industries' star people, people 
that will not have a paycheck between now and Christmas, people that 
will be suffering because of layoffs due to the dumping.
  Four, under section 201 the President may take action including 
imposing duties, a tariff rate quota or quantitative restrictions to 
respond to a surge of imports that is exactly what this bill calls for 
that is substantially causing serious injury to the United States 
industry.
  Lastly, under section 301 the President must take unilateral action, 
action on his part alone if he determines that a country is taking 
action in violation of trade agreements.
  The President has the tools. Mr. President, use them.
  Mr. CRANE. Mr. Speaker, I yield 2 minutes to the gentleman from New 
York (Mr. Houghton).
  (Mr. HOUGHTON asked and was given permission to revise and extend his 
remarks.)
  Mr. HOUGHTON. Mr. Speaker, I have been sort of a hard hat all my life 
about countries and industries taking advantage of the United States. 
One of the hardest things for me to have seen in terms of our basic 
materials are consumer electronics, things like that, where as 
countries come in and put our businesses out of business and yet at the 
same time we cannot get back into their countries.
  Now having said that, we must be careful in how we counterattack. The 
idea of banning steel I think is very, very risky. We have provisions 
in the trade law called 301 and super 301 as against dumping which we 
can enact. They are on the books; we can do something about it.
  Furthermore, even with the depreciation of the currency where there 
is no dumping at all there are opportunities to use section 201 which 
allows endangered industries to appeal and get some sort of relief.
  Those 2 provisions are on our books. We must use them, use those 
provisions. That is what the trade law was supposed to do.
  Mr. TRAFICANT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Indiana (Mr. Visclosky), who along with the gentleman from Ohio (Mr. 
Regula), the gentleman from Minnesota (Mr. Oberstar) and the gentleman 
from Pennsylvania (Mr. English), is largely responsible for these 
measures.
  Mr. VISCLOSKY. Mr. Speaker, I thank the gentleman from Ohio (Mr. 
Traficant) for yielding this time to me, and I think thank you's are 
also in order for the leadership for finally bringing this important 
issue to a vote on a real steel resolution for the House of 
Representatives, and I do want to add my compliments as well to the 
gentleman from Ohio (Mr. Regula) for his leadership on this issue.
  The gentleman from Illinois in his remarks indicated that we might be 
vulnerable, if we pass this resolution today, to retaliation. I will 
sharply disagree. We have been attacked already. Imports are up from 
Japan in the first 7 months of this year 114 percent. We have been 
attacked by Indonesia whose exports to the United States of steel 
products are up over 300 percent. We have been attacked by South Korea 
whose steel exports to the United States are up 89 percent.
  Now, as I mentioned earlier on the floor today, there is a letter 
being circulated by the so-called American Institute for International 
Steel. Because the steel companies on behalf of themselves and behalf 
of those workers whose jobs are threatened have finally filed trade 
cases to protect themselves in their very existence, the International 
Steel Institute has sent out a letter dated September 30 saying the 
earliest date for the withholding of liquidations would be December 9. 
Under the law, any imports that arrive during this period, i.e., 
September 30 to December 9, cannot be touched by any dumping duty that 
may be found.
  Thank you, International Steel Institute. The translation is, dump 
now,

[[Page H10960]]

dump often, dump a lot but do it by December 9.
  I am not worried about retaliation, Mr. Speaker. I am worried about 
the attack we are under.
  The administration has not acted and that is why we are here today in 
this House under the bipartisan resolution of the gentleman from Ohio 
(Mr. Traficant) to call upon the administration to act.
  I would further disagree with the assertions of the gentleman from 
Illinois (Mr. Crane). This does not demand a ban. It allows a ban, and 
I ask my colleagues to support the Traficant bipartisan resolution.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, how much time is remaining?
  The SPEAKER pro tempore (Mr. Pease). The gentleman from Pennsylvania 
(Mr. English) has 6\1/2\ minutes remaining. The gentleman from Illinois 
(Mr. Crane) has 16\1/2\ minutes remaining. The gentleman from Ohio (Mr. 
Traficant) has 6 minutes remaining.
  Mr. CRANE. Mr. Speaker, I yield as much time as he may consume to the 
gentleman from California (Mr. Dreier), our distinguished colleague 
from the Committee on Rules.
  Mr. DREIER. Mr. Speaker, I thank the distinguished chairman of the 
Subcommittee on Trade for yielding.
  Mr. Speaker, this resolution is very troubling. It demands that the 
President impose a 1-year ban on foreign steel imports which is 
completely counter to our anti-dumping laws and the rules-based trading 
system that we have in both the general agreement on tariffs and trades 
and the World Trade Organization.
  Mr. Speaker, the bill is an outrageous Smoot-Hawley-style response to 
the economic difficulties brought about by the Asian financial crisis. 
Support for this caveman economic policy would show the world that the 
United States Congress is prepared to repeat the mistakes of the great 
depression.
  There is no question that American steel producers are facing a stiff 
test from foreign steel that is priced at devalued currencies. However, 
steel is not the only American industry challenged by the economic 
downturn in Asia and Russia and which threatens to spread to Latin 
America. In California, millions of working families depend on 
producing computers, electronic components, industrial machinery, 
communications equipment, aircraft, semiconductors, textiles, apparel, 
autos, glassware, engineering and management services and a whole range 
of agriculture interests, and all are facing tough times because of the 
very, very sad problems that we are facing with the international 
economy.
  Why are we taking one industry, steel, and offering it the most 
outrageous protectionist, special interest assistance while so many of 
those industries that I mentioned and so many workers go without help?
  Of course, my colleagues Congressmen Smoot and Hawley might simply 
propose that we build the same steel wall of protectionism around all 
of those industries as well. The line forms right out on the Capitol 
steps just behind the steel guys.
  The right response to the very real international economic challenges 
facing this country is to focus on broad, national solutions, rather 
than attempting to protect one single industry.
  Mr. Speaker, this resolution is bad trade policy. It offers nothing 
more than a rapid descent into a collapse of the international trading 
regime and a repeat of the 1930s. It is an insult to the millions of 
hard working Americans feeling the pressure of the global economy who 
do not work in steel mills.
  I urge opposition to this resolution.
  Mr. REGULA. Mr. Speaker, will the gentleman yield?
  Mr. DREIER. I yield to the gentleman from Ohio.
  Mr. REGULA. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, it says in the resolution that the countries are not 
abiding by the letter of international trade agreements. In the 
gentleman's opinion, should we allow these countries to violate, that 
is an operative word, violate, international trade agreements?
  Mr. DREIER. Reclaiming my time, no, I do not believe they should. 
Based on what I have seen, this resolution is a violation of, as I 
said, not only our anti-dumping laws but the rules-based trading system 
that has been put into place by the WTO and the general agreement on 
tariffs and trade.
  Mr. REGULA. Do not we have a problem with these countries who are 
violating trade agreements and dumping into our markets? Should they 
not be enforced? Should they not be required to meet the law?
  Mr. DREIER. I strongly support enforcement of those agreements and I 
believe it should be done by way of the WTO, which is an organization 
which an overwhelming majority of the United States Congress got us 
involved in.
  My view is that this resolution is counter to the structure that has 
been put into place to address this, and if the gentleman looks at 
those industries, as I said, in my State of California and in other 
parts of the country, that are being devastated because of the crisis 
that exists in the Pacific Rim and now in Latin America, it seems to me 
that moving in one single area is a real mistake for us and could have 
a devastating impact.
  Mr. REGULA. Mr. Speaker, if the gentleman will continue to yield, 
maybe we should broaden this to take in some of the other illegal and 
dumped imports into our markets.
  Mr. DREIER. Reclaiming my time, I would say once again that there are 
a litany of industries and there may be some people who believe that we 
should take on every single industry, go ahead and pull up the 
drawbridge, and while 96 percent of the world's consumers are outside 
of our borders and we are trying our darnedest to take advantage of 
that, we clearly would get into a major international trade war. That 
is why I believe that this is very bad policy.
  I would be happy to further yield to the gentleman, if he would like.
  Mr. REGULA. I think the only thing, I think the gentleman would agree 
that if we are going to have trade agreements and they are going to 
mean anything, they should be respected by our trading partners and 
they should not be allowed to violate them?
  Mr. DREIER. I totally agree in strong enforcement of those but I 
believe that this kind of action is, in fact, counterproductive.
  Mr. REGULA. Mr. Speaker, I thank the gentleman.
  Mr. TRAFICANT. Mr. Speaker, what is the breakdown of the time?
  The SPEAKER pro tempore. The gentleman from Pennsylvania (Mr. 
English) has 6\1/2\ minutes remaining. The gentleman from Illinois (Mr. 
Crane) has 11\1/2\ minutes remaining. The gentleman from Ohio (Mr. 
Traficant) has 6 minutes remaining.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 1 minute to the 
gentleman from Illinois (Mr. Weller), a member of the Committee on Ways 
and Means.
  (Mr. WELLER asked and was given permission to revise and extend his 
remarks.)
  Mr. WELLER. Mr. Speaker, I rise in support of this bipartisan effort 
to help save steel jobs in Illinois and throughout this country.
  The question is simple. When we are losing jobs, steel jobs, good 
paying jobs in Illinois, why has there been no action by the Clinton 
administration? Why does the Clinton administration do nothing while 
Illinois steel workers lose jobs? We have 6,000 steel workers in 
Illinois and, frankly, this resolution is a call to arms. It is a call 
for action.

                              {time}  1530

  There are over 20 firms producing steel or steel product in the 
district I have the privilege of representing. It is an issue of jobs 
for the folks back home.
  Here is what it means. Birmingham Steel shut down for a week, is now 
only working four days a week. Belson Steel has cut their payroll by 10 
percent. Acme Steel in Chicago has filed bankruptcy. Northwestern Steel 
and Wire Company has said it may cut up to 450 jobs at Illinois mills.
  It is time for action, Mr. Speaker. Japanese steel imports have 
almost doubled, Korean steel imports are up 89 percent, imports in 
general are up 45 percent. To quote Marc Pozan of Belson Scrap and 
Steel, ``it is not a flood, it is a deluge.'' We need to put a stop to 
it. It is time for action.
  Mr. Speaker, I include the following article for the Record.

[[Page H10961]]

            [From the Kankakee Daily Journal, Oct. 11, 1998]

                      Steel Imports Hit Area Hard

                            (By Roy Bernard)

       A tidal wave of foreign steel and scrap is swamping the 
     U.S. market, and its impact is being felt by two Bourbonnais 
     businesses.
       Birmingham Steel was forced to close one week at the 
     beginning of September, idling 285 workers, said plant 
     manager John Ohm.
       He added that since then, employees have returned to work 
     in the mini-mill, but their schedules have been reduced to 
     32-hour work weeks. Birmingham Steel's workforce in Joliet 
     also had a one-week stoppage, and now people there are 
     working four days a week instead of five.
       The company is trying to avoid permanent cutbacks.
       ``There is a flood of foreign steel into this country,'' 
     Ohm said. ``We've had to cut back both operations, but we're 
     not planning any layoffs.''
       Meanwhile, at nearby Belson Scrap and Steel, the company is 
     facing a double whammy. Cheaper foreign scrap is being 
     shipped to the United States and Belson can't compete on 
     price.
       At the same time, the Belson Steel Center is losing 
     business from companies that are buying cheaper foreign 
     steel.
       ``Warehouses and manufacturers normally buy their steel 
     from the domestic markets,'' said Marc Pozan, president of 
     Belson Scrap & Steel.
       The two-way attack has resulted in a 10 percent reduction 
     in the number of Belson's employees, or about 15 workers, he 
     said.
       Foreign scrap and steel is ``affecting every part of our 
     business,'' Pozan said.
       ``This glut of foreign steel is causing an oversupply of 
     steel for the consuming industry,'' he added. ``They're 
     cutting back production and using less scrap. There is an 
     oversupply of scrap.''
       Because of the dumping of foreign steel, the Belson Steel 
     Center has had to lower its price for its product and that 
     caused a decrease in the company's profits and forced the 
     Belson's to reduce its overhead by laying off workers, said 
     Pozan.
       The steel is coming from Asia and lately Russia. Many of 
     the Asian and Russian companies are desperate to keep their 
     employees working, so they are selling the steel for even 
     less than what it costs to produce, Pozan said.
       He is calling for the federal government to step in and 
     issue tariffs on foreign steel.
       ``I strongly urge that something needs to be done to deal 
     with these foreign practices,'' Pozan said. ``Countries are 
     giving these companies subsidies to sell steel cheaper in our 
     market.
       ``We need to put tariffs on this foreign steel, to stop 
     this flood of imported steel. It's not a flood, it's a tidal 
     wave,'' Pozan added.
       For people who make a little extra income collecting steel 
     and aluminum cans, they will find the price soon will be 
     dropping. Belson's is paying 32 cents a pound for aluminum. 
     About three years ago, the price was 45 cents a pound.
       Pozen said he began noticing signs of the foreign flood 
     about three months ago. Most ports are seeing 50 percent 
     increases in steel imports this year.
       Ohm said Birmingham Steel saw the first signs of steel 
     dumping in the South in May and June. Since then, the foreign 
     steel has made its way up the Mississippi River and into the 
     Chicago area.
       Birmingham Steel in Bourbonnais Township continues to buy 
     domestic scrap because it is too expensive to ship the scrap 
     upriver to Chicago.
       The company's plants in the South have been buying foreign 
     scrap. While that might appear to make the Southern mills 
     more efficient, Ohm noted that the Bourbonnais Township 
     facility underwent extensive modernization, and that makes 
     the cost of reinforcing bar production here to be competitive 
     with the Southern plants.
       ``That modernization has certainly helped us,'' said Ohm.
       One of the possible bright spots for Belson and Birmingham 
     Steel is the announcement that the Chapel Steel Co. and the 
     Alabama Metal Industries Corp. are moving to the former CBI 
     building, which is near Belson's and Birmingham Steel. Both 
     new companies are from Birmingham, Ala.
       ``This is great news for the area,'' said Pozan. 
     ``Hopefully, they will buy some scrap and some steel. We hope 
     the companies will be great trading partners.''
       Ohm said Alabama Metal Industries operated a facility in 
     Chicago and is moving to CBI. Alabama Metal ``has been a 
     customer, so I don't see any benefit except that the company 
     will be closer to us.''
       Chapel Steel would be a new customer that could bring more 
     business to Birmingham Steel, Ohm said.

  Mr. TRAFICANT. Mr. Speaker, I yield one minute to the gentleman from 
Minnesota (Mr. Oberstar), our distinguished ranking member of the 
Committee on Transportation and Infrastructure and a fighter for years 
for the steel industry and for fairness.
  (Mr. OBERSTAR asked and was given permission to revise and extend his 
remarks.)
  Mr. OBERSTAR. Mr. Speaker, I thank the gentleman for yielding me 
time.
  Mr. Speaker, I am for free trade, fairly conducted. Steel? Why steel? 
Because it is the most versatile building material of an industrial 
society. It is vital to a nation's progress, both here and abroad.
  Twenty years ago when steel was under assault, we were told then by 
the free-traders, the unlimited, no-holds-barred free-traders, you are 
old, outmoded and inefficient; you ought to modernize. That is why 
foreign steel is coming into this country.
  Today, 350,000 jobs fewer, $50 billion more invested in the steel 
industry and an efficient industry that produces the best steel in the 
world, we are now told, oh, you are trying to draw a moat around the 
industry.
  All we are trying to do is tell the Federal Government, enforce the 
laws that set forth the conditions for free and fair trade. The 
previous speaker said, why has the Clinton Administration done nothing?
  Well, we asked the same question in 1981 of the Reagan 
Administration; because there are free-traders in both administrations 
that say no-holds-barred, play by the Marquis of Queensberry rules, 
while our adversaries are using black-belt karate.
  It is time to stand up for steel.
  Mr. Speaker, I yield two minutes to the gentleman from New York (Mr. 
Gilman), the chairman of the Committee on International Relations.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, I am pleased to rise in strong support of the bipartisan 
resolution offered by the gentleman from Ohio (Mr. Traficant). We have 
a growing concern that steel imports are flooding into our Nation 
without any effective response from the administration. Scores of our 
Nation's highly efficient steel producers are at risk, as are the jobs 
of thousands of steel workers across the country.
  While I know that several of my colleagues on this side of the aisle 
have some concerns and reservations about the imposition of an 
immediate ban on steel imports into this country, surely our trade 
negotiators can now begin the long overdue effort to put voluntary 
constraints in place on below-market-priced steel from foreign nations 
that are dumping steel and steel products into our Nation.
  This resolution asks for a report and monitoring by the 
administration on the extent to which our international trade 
agreements are being violated. I think it is long past due for the 
administration to demand, as this resolution does, that our trade 
partners abide by the spirit and letter of our trade agreements.
  Despite the fact that American firms are now the lowest cost, most 
flexible producers among the industrialized nations, our overall 
merchandise trade deficit in 1997 reached $198 billion. At current 
rates this deficit is expected to reach some $282 billion by the end of 
the year. Our deficit with Japan is expected to reach $72 billion in 
this year alone.
  Accordingly, Mr. Speaker, in the interests of protecting our steel 
industry, I urge adoption of this measure.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 1\1/2\ minutes to 
the gentleman from Ohio (Mr. Ney), a strong friend of steel.
  Mr. NEY. Mr. Speaker, I want to commend the gentleman from Ohio (Mr. 
Traficant) and the gentleman from Ohio (Mr. Regula) for their hard work 
on an extremely important issue.
  Somebody mentioned today about special interests. We are talking 
about special interests today: American men and women, working 
Americans. That is a good special interest. There is nothing wrong with 
working people and for this Congress to stand up for them.
  It is time for the Congress to wake up. It is time for the White 
House to wake up. I talked to day to the mayor of Weirton, West 
Virginia. He is having a rally tonight in Weirton.
  They have to rally and try to beg their government to do something to 
help them? The mayors in Europe did not have to beg European 
governments to help them. What is going on? What is wrong with our 
thinking?
  The United States wheel workers of America, the gentleman from Ohio 
(Mr. Traficant), the gentleman from Ohio (Mr. Regula), many others, the 
companies, are in this fight for their survival; not for the holy 
dollar. For

[[Page H10962]]

the survival of workers, their communities, their families, their 
ability to pay for their schools, their ability to pay their taxes, 
their ability to keep their communities going and to survive. That is 
what this argument is about.
  It is a very clear choice. Now is the time to stand up for a change 
for our workers. Now is the time to stand up for a change for our jobs. 
Now is the time to stand up for America. Vote yes.
  Here is your vote. It is very clear cut. Are you going to vote for 
Weirton, West Virginia, New Philadelphia, Ohio, and Zanesville, Ohio, 
or Russia? Are you going to vote for Steubenville, Ohio, Toronto, Ohio, 
Youngstown, Ohio, Bellaire, Ohio, or Japan? That is the clear-cut 
choice.
  A yes vote stands up for a change for working Americans. This is good 
for the country, this is good for our workers. I urge support of this 
measure.
  Mr. TRAFICANT. I to yield 30 seconds to the gentleman from 
Pennsylvania (Mr. Doyle), a great young member from the Pittsburgh 
area.
  (Mr. DOYLE asked and was given permission to revise and extend his 
remarks.)
  Mr. DOYLE. Mr. Speaker, I rise today to urge support of the Traficant 
resolution. The U.S. steel industry and its workers are suffering 
tremendously from reduced orders as a result of dumping by Asian and 
Russian producers, but the administration has not acted to stop this 
illegal practice.
  The members of the European Union have been smart enough to protect 
their steel industry from dumping by erecting temporary barriers to 
steel imports during the financial crisis. Their steel industry will 
weather this storm.
  American steel workers, the most efficient in the world, cannot 
continue to be besieged by foreign steel products, while waiting 
indefinitely for trade cases to be settled. Damage to the American 
steel industry is extensive, severe and rapidly growing. The House must 
act today.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, it is a privilege for me to 
yield one minute to the gentleman from Indiana (Mr. Buyer), a friend of 
steel.
  Mr. BUYER. Mr. Speaker, I am here to also speak on behalf of steel 
workers across the country, and particularly those in Indiana, who are 
in the midst of an unprecedented flood of foreign steel.
  The steel industry is an industry fueled on the backs of hard-working 
Americans. I toured the Bethlehem steel net and spoke with many of the 
steel workers. They are the best in the world, but they can compete 
only if it is fair competition.
  A decade ago the steel makers were forced, again feeling the surge of 
imports being dumped on our markets at below cost, and we acted, but it 
was only a short-term fix.
  I suppose what bothers me most is when I look across the country at 
many different industries, steel is an industry that is most vital to 
our Nation's security. It is a national security issue, and that is 
what has me most concerned.
  I am a supporter of GATT, I am a supporter of NAFTA, and I voted 
against Fast Track. You say why would you vote against Fast Track? 
Because it bothers me that the administration has negotiated so many 
trade agreements out there, and then they do not even enforce the trade 
agreement and even violated some of those trade agreements.
  This is a prime example where the administration should be leaning 
forward, not with bended-knee to these nays nations that violate these 
trade agreements. So this is a strong message. Let us do the right 
thing and let us back the American worker.
  Mr. TRAFICANT. Mr. Speaker, I yield 30 seconds to the gentleman from 
Illinois (Mr. Evans), the distinguished ranking member on the Committee 
on Veterans' Affairs.
  Mr. EVANS. Mr. Speaker, I rise on behalf of the hard working steel 
workers in my district and the 450 employees of Northwestern Steel and 
Wire who were informed last week that their jobs would be eliminated at 
the end of this year.
  We have a responsibility to our steel industry and its employees to 
ensure a level playing field. This means aggressively enforcing our own 
trade laws and imposing a moratorium on steel imports from Asia, Russia 
and Brazil until our industry is back on its feet. This means demanding 
that the administration provide us with concrete evidence that they 
have responded to this steel crisis.
  We can no longer stand idly by as more and more steel workers lose 
their jobs. I urge my colleagues to support the Traficant resolution.
  Mr. TRAFICANT. Mr. Speaker, I yield 30 seconds to the gentleman from 
Ohio (Mr. Kucinich), one of the youngest mayors ever elected in the big 
city of Cleveland, doing a fine job in Cleveland.
  (Mr. KUCINICH asked and was given permission to revise and extend his 
remarks.)
  Mr. KUCINICH. Mr. Speaker, I rise on behalf of Cleveland steel 
workers. Steel imports have reached a crisis level. Thousands of steel 
workers are in danger of losing their jobs. We have to take strong 
action, which is what this resolution does.
  Opponents are more concerned with the integrity of the World Trade 
Organization than with the integrity of American anti-dumping laws and 
the jobs of American steel workers. I say we should stand up for steel 
and American steel workers. Support H. Con. Resolution 598.
  Mr. TRAFICANT. Mr. Speaker, I yield 30 seconds to the gentleman from 
New Jersey (Mr. Pascrell), a distinguished member of the Committee on 
Transportation and Infrastructure.
  Mr. PASCRELL. Mr. Speaker, a one-year ban is a reasonable and just 
response to the countries that have defied international law and 
compromised the security of our own Nation.
  As to the issue of the World Trade Organization, all I can say is 
that we do not represent the World Trade Organization. We represent the 
American people. They want action. They do not want consultation, they 
do not want negotiation, they do not want litigation. They want jobs. 
And that is what we are here to uphold, and that is what we should be 
standing for today. Everybody should be voting yes on this resolution.
  Members of this body did not take an oath to uphold and protect GATT; 
we took an oath to uphold and protect the Constitution of the United 
States. Do it!
  And the Constitution says that Congress shall have the power and 
authority to regulate commerce with foreign nations--not the WTO.
  Finally, the President took an oath to uphold and enforce the laws of 
the United States--not the WTO. That's what we're asking the President 
to do: uphold the trade laws of the United States.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield one minute to the 
gentleman from California (Mr. Horn), a strong friend of steel.
  Mr. HORN. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, I happen to represent the two largest ports in the 
United States, the Port of Long Beach and the Port of Los Angeles. I 
want to see steel moving both ways through those great ports. They are 
among the top in the world. But, right now, 90 percent of the steel 
from those ports comes in from Asia. Only 10 percent goes out from the 
United States.
  Now, if this were 1959 when we had the six month steel strike, that 
would be one thing. We were not competitive then. We are now 
competitive. We have quality steel, and we can match wits with anybody. 
But when you get into dumping, and we had a lot of that in the fifties, 
we have had it periodically, it means they are simply selling below 
market price, and that is what they are doing now in this recession 
that has cut its way across Asia.
  We need to call them to the bar of justice. The fact is, the laws are 
on the books. The administration knows it. Now let us have the 
administration use the power and enforce the law. The only thing these 
countries understand is a tough trading mission, and if we are going to 
have fair trade, that is what we have to have.

                              {time}  1545

  Mr. TRAFICANT. Mr. Speaker, I yield the balance of my time to the 
gentleman from Pennsylvania (Mr. English) for the purpose of closing 
debate.
  The SPEAKER pro tempore (Mr. Bonilla). The gentleman from 
Pennsylvania (Mr. English) will be recognized for the remainder of the 
time of

[[Page H10963]]

the gentleman from Ohio (Mr. Traficant).
  Mr. CRANE. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I again rise in strong opposition to House Resolution 
598. I do this not because I dispute the seriousness of the issue at 
hand, but because I believe that the methods being used are 
significantly misguided, and will lead to a downward spiral of 
protectionism.
  The proponents of this resolution argue that the Asian financial 
crisis has led countries to dump their products on the U.S. market at 
below fair market prices. In response, the proponents of House 
Resolution 598 call upon the President to impose a 1-year ban on 
imports of steel products from the countries listed in the resolution, 
many of whom are suffering from severe financial and economic 
difficulties.
  I believe that this response would send a very bad signal to the 
governments of the targeted countries, at a time when the United States 
is encouraging them to adopt market-opening policies which will bring 
long-term stability to their economies. Moreover, terminating U.S. 
purchases of steel from these countries through an import ban would 
likely worsen the economic crisis faced by these countries and create 
more turmoil in the region.
  I believe it is in our interest to maintain a more constructive 
approach to this problem by working with our friends and allies in this 
critical region of the world. On this basis, the gentleman from Texas 
(Chairman Archer) introduced a resolution, House Concurrent Resolution 
350, which was brought to the House floor for a vote on October 12.
  This resolution called upon the President to pursue vigorous 
enforcement of U.S. trade laws with respect to steel; to negotiate with 
Japan, Korea, and the European Union to eliminate barriers and open 
their markets to the glut of steel on the market; to closely monitor 
import levels; and to report to Congress by January 5 on the impact the 
significant increase in steel imports is having on employment, prices, 
and investment in the United States.
  Passage of House Concurrent Resolution 350 would have sent a strong, 
clear, and united message to the President and to the world that 
Congress is deeply concerned about this issue. Unfortunately, many of 
the proponents of the resolution before us today chose to politicize 
this matter by voting against House Concurrent Resolution 350, and they 
defeated the resolution.
  Mr. Speaker, I have no disagreement with the proponents of House 
Resolution 598 about the seriousness of the impact that the increase in 
steel imports is having on the U.S. industry and on its workers. 
However, I believe that their approach is not only the wrong solution, 
but that it may lead to more severe problems in Asia that could have 
far more serious repercussions for the world.
  I urge my colleagues to oppose House Resolution 598.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, it is my privilege to yield 
all my remaining time to the gentleman from Ohio (Mr. Traficant), the 
prime sponsor of this legislation, to close debate.
  The SPEAKER pro tempore. The gentleman from Ohio (Mr. Traficant) is 
recognized for 3\1/2\ minutes.
  Mr. TRAFICANT. Mr. Speaker, I thank my neighbor, who has done an 
outstanding job in western Pennsylvania, which has been devastated for 
yielding.
  I want to rise to thank the gentleman from Ohio (Mr. Ralph Regula). 
If it were not for him working out the machinations of whatever 
instrument might pass, we would not be here; the gentleman from Ohio 
(Mr. Bob Ney) representing steelworkers; the gentleman from California 
(Mr. Steve Horn) for looking at fairness; the gentleman from Indiana 
(Mr. Pete Visclosky).
  Let me just say, Mr. Speaker, in October of 1977 the first major 
steel mill in America closed, and it was in my district. Since then, 
thousands and thousands and thousands of workers not only have lost 
their jobs, their homes, their pensions, their health care, they lost 
everything. But do Members know what? They never lost hope, hope that 
the Congress of the United States would some day look at illegal trade.
  This is not a debate about free trade. Many free traders understand 
the game, and who was more of a staunch free trader than Ronald Reagan? 
But in the early eighties, when Japan literally almost destroyed an 
American icon, Harley-Davidson, Ronald Reagan said, enough is enough. 
He imposed quotas. He imposed sanctions. He forced the Japanese to open 
up 20 percent of their semiconductor business market. Ronald Reagan did 
what he had to do that day. Many of us felt he could have even done 
more.
  We know this president is not going to implement a ban, but we also 
know that this House is telling the President, by God, if you are going 
to worry about violating the WTO and GATT, what about their illegal 
trade? Is that not a violation of the WTO and GATT?
  The President must act. The Congress today will tell the President, 
he has not acted. He must use whatever means necessary to stop illegal 
trade. That is a violation of law.
  I want to say one last thing. I think Congress is coming together to 
look at a major phenomenon, Mr. Speaker. We are the marketplace. We 
cannot be a protectionist Nation, but we cannot allow our Nation's 
sovereignty and national security to be put at risk by illegal 
practices.
  There is a mechanism for it. If this president has the anatomy to do 
what is necessary, they may take him to the WTO. By God, so be it. If 
we are going to have a WTO, let us have a ruling. We allow the 
President to take that stand.
  I appreciate the support offered by the gentleman from New York (Mr. 
Gilman) more than the gentleman knows. I think it shows that many free 
traders want fairness. We will not tolerate illegal trade. I am asking 
for an aye vote on behalf of American workers, American business. I am 
asking for an aye vote on behalf of farmers, on behalf of vegetable 
growers, on behalf of our high-tech industries.
  I want to thank the gentleman from Pennsylvania (Mr. English) and the 
gentleman from Ohio (Mr. Regula) for the great job they have done.
  Mr. STUPAK. Mr. Speaker, I rise today to urge the Republican 
leadership to take up H. Res. 598, a resolution demanding the 
Administration to stop the illegal dumping that is going on in our 
nation's steel markets.
  While, the House Leadership delays and refuses to schedule a vote on 
this urgent issue, American jobs are being lost every day. In my 
district, jobs are being lost because American steel producers cannot 
compete with the illegally priced steel.
  The resolution would call for an immediate review and investigation 
of this situation. It would call for a one year ban on steel from any 
country that refuses to enforce international trade law. It would 
establish a task force to ensure that this critical situation is 
closely monitored. Finally, the resolution asks for a report to 
Congress from the Administration for its plan for dealing with this 
crisis.
  Mr. Speaker, while the Republicans play politics, Americans are 
losing their jobs. Stop playing politics and pass H. Res. 598.
  Mr. COYNE. Mr. Speaker, I rise today in support of this important 
legislation, and in support of America's threatened steel workers.
  Mr. Speaker, today foreign countries like Japan, Russia, and Brazil 
are dumping millions of tons of steel in this country below cost. Their 
economies are in trouble, and they are trying to export their way out 
of financial calamity.
  I am concerned about America and American jobs. American steel 
workers should not bear the burden of solving the world's economic 
crisis.
  My good friend, Mr. Traficant, has introduced the legislation which 
is before us today, and I for one am going to vote in support of it. 
This resolution calls upon the President to impose a one-year ban on 
steel imports from Japan, Russia, and Brazil. In addition, it calls for 
the administration to closely monitor steel imports from other 
countries to determine whether they, too, are dumping steel in the 
United States.
  America's steel workers and their families are depending on us today 
to do the right thing. They need our help in combating this unfair 
competition from overseas. I urge my colleagues today to join me in 
standing in solidarity with America's steel workers and pass this 
important resolution.
  Mr. SOUDER. Mr. Speaker, I rise in support of H. Res. 598. This is an 
issue we have struggled with for a while now and I am pleased to see 
increasing support here in the House. The US steel industry, a highly 
competitive world-class producer, is being inundated by unfairly traded 
imports. In one year, from June 1997 to June 1998, steel imports from 
Japan grew by 113.7%, from Korea, 89.5%, and from Russian, 50.6%.

[[Page H10964]]

  This is not because they are producing better steel, and they 
certainly aren't more efficient. Since restructuring in the mid-80's 
the US steel industry is the world leader in quality, efficiency and 
productivity. On an even playing field, US steel producers are second 
to none.
  Dumping of steel is occurring because many countries in economic 
crisis have adopted policies of exporting their way out of their mess. 
They will do this at any cost, including selling prices that don't 
remotely cover their costs of production.
  Foreign steel is being sold in the US at far below market value. 
Import prices, traditionally $20-$30 per ton less than domestic prices, 
are now $80-$100 per ton less than domestic prices--according to David 
Higbee, President of Sawhill Tubular Division of Armco, Inc.
  The combination of massive tonnages of steel arriving at US ports and 
the aggressively low prices at which they are being sold has caused 
intense price distortion through our industry, even during a period of 
strong domestic demand for steel products. In the face of 
deterioriating prices, US producers have been forced to cut production, 
slash expenditures, and lay off employees.
  This is not trade based on comparative advantage. It's time we 
require those foreign countries that we assist to stop unfairly 
propping up their dying steel industries at the expense of our American 
companies.
  I believe the onus should be put on foreign companies and governments 
to prove that they are not dumping steel below cost. They simply need 
to be held accountable for selling one penny below their manufacturing 
cost. A slap on the wrist with a countervailing duty just isn't enough.
  We are not talking about protecting American industry here. Rather, 
it's about achieving equity. A foreign company selling steel under 
market value is a question of competitiveness. A foreign company 
selling steel under cost is a question of fairness.
  I would also like to submit for the Record the remarks of Keith 
Busse, CEO of Steel Dynamics International, during a hearing of the 
steel caucus last month.
  It is time to send a message to those countries that knowingly dump 
with intent to cause severe injury to our steel industry. We can no 
longer in good faith continue to help those that continuously injure 
us.

  Statement of Keith Busse, President and CEO, Steel Dynamics, Inc., 
      Member, Board of Directors, Steel Manufacturers Association

       Mr. Chairman, and Members of the Steel Caucus, I appreciate 
     the opportunity to appear before you today along with other 
     representatives of the US steel industry. I am Keith Busse, 
     President & CEO of Steel Dynamics Inc. (SDI), in Butler, 
     Indiana. SDI is a minimill producing carbon steels utilizing 
     the electric arc furnace production process and thin slab 
     casting to make hot rolled, cold rolled, and galvanized sheet 
     steels. The company, which is one of the nations newest and 
     most efficient steel producers, was established in 1994. We 
     cast our first heat of steel in 1996 and became profitable in 
     only 6 months. Since 1994, SDI has invested over $600 million 
     in equipment, implementing the most advanced technology. This 
     year, we completed the installation of an additional thin 
     slab caster and a new state-of-the-art cold rolling mill. 
     Later this year, SDI will commission a revolutionary new 
     technology to manufacture virgin iron units for consumption 
     in electric arc furnaces at a cost of $90 million. We also 
     anticipate starting construction late this year of a $350 
     million structural mill, also in Indiana.
       SDI is one of the most cost efficient steel producers in 
     the world. We provide 560 high-paying manufacturing jobs at 
     our new mill in Indiana, and hundreds more in related 
     industries. Accordingly, we support free trade flows based on 
     comparative advantage.
       I am commenting today on behalf of my company and also for 
     the Steel Manufacturers Association (SMA), the primary trade 
     association of steel minimills, which account for almost half 
     of the steel produced in the US today. The SMA consists of 61 
     member companies, geographically dispersed across North 
     America, with representation in 88 Congressional districts 
     and 34 states.


                        The U.S. Steel Industry

       The steel industry has undergone a remarkable 
     transformation, beginning in the mid-1980s and continuing 
     today as evidenced by SDI's success. Steel's revival can be 
     attributed in large part to the minimills--efficient, low-
     cost producers that have grown rapidly during a time when 
     many other steel companies in the US contracted or shut down.
       With few exceptions, the minimills have seldom relied 
     solely on US antidumping and countervailing duty laws to 
     challenge unfairly traded imports. Competition is so strong 
     in our end of the business that we believe in exhausting all 
     competitive means available to improve our efficiency, in 
     order to meet importers' prices, rather than just reacting 
     with trade law cases. In the past, we have been successful in 
     meeting or beating our foreign competitors' prices. Events of 
     the past few months, however, have reached crisis 
     proportions, with even the most competitive US steel 
     producers responding to import prices that reflect a desire 
     of certain foreign producers to earn dollars at any price--at 
     selling prices that don't remotely cover their costs of 
     production. Even Nucor, the largest minimill and now the 
     second largest steel company in the US, a company who has 
     long supported a free trade stance, has recently written to 
     members of the Administration complaining about the surge of 
     unfairly traded imports at insane dumped prices. In response 
     to the import surge, Nucor has recently announced two price 
     reductions on hot rolled sheets, steels' most common product, 
     a $50-$60 per ton (16-20%).


                              the problem

       The US steel industry, a highly competitive world-class 
     producer, is being inundated by unfairly traded imports. In 
     one year, from June 1997 to June 1998, steel imports from 
     Japan grew by 113.7%, from Korea, 89.5%, and from Russia, 
     50.6%. Steel from Russia, Japan, Korea, and other trading 
     partners is being sold in the US today at far below market 
     value, and in some instances below variable cost of 
     production, in the home countries.
       The import surge can be specifically linked to the Asian 
     and Russian economic crises. To some extent the crisis is 
     driven by emerging nations whose currencies have been sharply 
     devalued, a crisis that we have never before faced and that 
     our trade laws are not prepared to handle. Collapsing non-
     market economies where cost accounting is an unknown art is 
     also a major trade problem that can threaten this nation's 
     basic industries. The other driver in this calamity relates 
     to Japan's failed financial programs, which are now 
     substantially affecting it as well as other nearby nations.
       A diversion of steel trade into the US is occurring from 
     Asian economies, which are no longer importing steel, and 
     have also lost their own home markets. Other industrial 
     countries have either closed or limited access to their own 
     markets through negotiated bilateral agreements or 
     understandings to limit their steel imports from Asia and 
     Eastern Europe.
       The countries in crisis have adopted policies of exporting 
     their way out of their economic mess, at any cost, including 
     selling at prices far below costs of production.
       The result is wreaking havoc on the US steel industry--
     injuring almost every US steel producer, including some of 
     the most competitive steel mills in the world.
       The combination of massive tonnages of steel arriving at US 
     ports of entry and the aggressively low prices at which they 
     are being sold has caused intense price distortion across the 
     US steel industry, even during a period of strong domestic 
     demand for steel products. Deteriorating prices have forced 
     US producers to cut back production, slash expenditures, and 
     lay off their own employees in reaction to the flood of 
     imports traded far below market value.
       This is not trade based on comparative advantage. We are, 
     in fact, confronted with an economic crisis in the US steel 
     industry, stemming directly from the structural mismanagement 
     by several other governments of their economies.


                      Inadequacy of US Trade Laws

       In time of trouble, the steel industry has often looked to 
     US antidumping and countervailing duty laws to remedy the 
     problems caused by unfairly traded imports. Unfortunately, 
     these remedies take time, and, if successful, often provide 
     relief too late to forestall serious injury from occurring. 
     Furthermore, US trade laws were not designed to address 
     structural failures of economic management by governments, 
     triggering massive currency devaluations or the disruptive 
     incursions of non-market economies in the world steel market.
       US trade laws require US steel producers to prove injury 
     before a remedy, in the form of a duty or quota, can be 
     applied. Trade law remedies are limited in scope and may not 
     be able to address effectively the structural economic 
     problems that are contributing to massive import surges.
       SMA members do support the maintenance and strict 
     enforcement of our nation's trade laws, as one component of 
     US trade policy. Our trade laws are effective in responding 
     to dumping and subsidization on a product-by-product basis 
     involving a limited number of steel trading partners. Alone, 
     they are insufficient to cope with the structural flood of 
     imports we face today.


                             Proposed Steps

       Neither the US Government nor its steel industry can afford 
     to wait for the trade law process to take its course. 
     Accordingly, we propose the following specific actions, and 
     urge the Congress to request the Administration to implement 
     these measures:


        Initiate Bilateral Discussions with Offending Countries

       In Russia, steelmakers simply do not know their cost of 
     production. Having visited and talked with many of these 
     producers I can assure you that cost accounting, as we know 
     it, is not an art which is practiced there. US steel industry 
     analysts and US steel companies agree that Russian 
     steel producers are selling at prices that don't remotely 
     cover their costs. Other countries, including Japan, are 
     also engaging in similar predatory behavior in the US 
     market.
       US acceptance of undervalued imports is an ineffective way 
     to help these countries obtain hard currency or solve the 
     World's economic crisis.
       We respectfully request Members of the Congress to urge the 
     Administration to

[[Page H10965]]

     begin bilateral discussions with the exporting countries 
     currently responsible for the disruptions in the US steel 
     market, with a goal towards establishing voluntary export 
     limitations, similar to those which the European Union has 
     had in place with its East European trading partners.


                           exercise leverage

       Our trade negotiators should use every possible forum to 
     alert our trading partners to the nature and depth of injury 
     their policies are causing the US steel industry.
       US trade negotiators should warn of potentially severe 
     steel import limitations emanating from trade cases, and 
     suggest that offending governments and their industries take 
     immediate action to alleviate US market disruptions.


                         concurrent resolution

       Mr. Chairman, and the other Members of the Steel Caucus, we 
     would like to express our appreciation for the concurrent 
     resolution you intend to introduce ``calling on the President 
     to take all necessary measures to respond to the surge of 
     steel imports.'' We shall urge the Members of Congress in 
     those states and districts in which our member companies have 
     plants to support this resolution. In addition, we urge the 
     Congressional Steel Caucus to press the Administration to 
     initiate bilateral discussions with the countries that have 
     caused this problem, in order to provide us with some 
     potential for prompt relief.
       Thank you for your continuing support and for the 
     opportunity to address the Congressional Steel Caucus on this 
     urgent matter.

  Mr. ADERHOLT. Mr. Speaker, I would like to announce my support of 
House Resolution 598, introduced by Mr. Traficant. I am pleased that 
today Members have an opportunity to vote on a tough, reasonable House 
Resolution addressing this issue.
  The leadership has been negotiating almost around the clock with the 
Clinton administration on the budget, so I appreciate their attention 
to this also very important matter of aiding the U.S. steel industry.
  With all the budget talks going on, why have we members of the 
Congressional Steel Caucus pressed so hard for a vote on steel in these 
last days of the session? It is because the U.S. steel industry is in a 
crisis. It is too late to make leisurely proposals as if we were 
addressing a problem of the future. The problem is NOW; orders to U.S. 
steel companies are at 50% of normal NOW; families are out of work NOW.
  Some oppose a one-year ban on certain foreign steel products and say 
that such an action is too strong. Consider these two facts: (1) U.S. 
companies wishing to file a trade petition about dumping must first 
spend six months gathering data so that their case will be taken 
seriously; (2) there is approximately six months of foreign steel 
currently piled up in ports from Alabama to Maryland to Ohio.
  Voting yes on this resolution is the very least we should do as 
Members of Congress to help a U.S. industry which is unfairly being 
sacrificed in the name of global stability. I have said before and say 
again--it is wrong to kill U.S. jobs for the purpose of keeping afloat 
foreign governments and economies.
  The U.S. steel industry has streamlined and modernized. No one can 
compete against unfair, below production-cost prices. This resolution 
is similar to my bill H.R. 4762, and I commend Mr. Traficant on his 
long-term leadership on this issue. Vote yes on this resolution to urge 
President Clinton to take immediate action. I yield back the balance of 
my time.
  Mr. DINGELL. Mr. Speaker, let us be clear, the government of South 
Korea provided Hanbo Steel with a $6 billion subsidy to continue 
producing steel. Hanbo is producing the same steel that sits in our 
ports and results in American steel workers losing their jobs.
  Its time we stand up for steel. If the South Koreans protect their 
workers at our expense, why do we stand back and allow them to continue 
this illegal act. It is an abomination. This has nothing to do with 
free trade and whether you support increased trade. This issue is about 
how we react when other nations take advantage of our strong economy 
and our market.
  Its time to take a stand. I urge all members to support this 
resolution.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, as a cosponsor of H. Res. 598, 
I rise to speak in favor of the passage of this resolution, which 
expresses the sense of the House that provisions of the Trade and 
Tariff act of 1930 must be vigorously enforced.
  We all know that several regions of the world are currently suffering 
from tremendous economic turmoil. Specifically, East Asia, Russia, and 
South America have all suffered catastrophic fiscal upheavals causing 
government and industry to take drastic action to save what little 
money they have.
  One of the actions that countries such as Russia and Brazil have 
taken is to flood our markets with cheap imports. Those imports include 
steel, which has had a drastic effect on our industry here at home. 
Just this year, steel imports from Asia have increased 70%, and Russian 
importers are enjoying their highest-ever level of steel exports to the 
United States. The result is that the steel industry here at home has 
been forced to lower their prices in order to compete--20% in the last 
three months.
  This resolution tries to remedy the situation by asking the 
government to vigorously enforce treaties that govern this type of 
trade, such as the Trade and Tariff Act of 1930. Although I am 
sympathetic to the plight of those countries, we must still vigorously 
enforce our laws to avoid desuetude and the entrenchment of a policy 
that does us substantial more harm than good.
  H. Res. 598 also calls on the Administration to immediately review, 
for a period of ten days, the import of hot-rolled steel products into 
the United States from Japan, Russia, Brazil and numerous other 
countries that have been accused of dumping. This review would help us 
collect information that will affirm or deny whether or not these 
countries have been undercutting our industry.
  To further enhance our understanding of the problem, the resolution 
also asks the Administration to establish a task force which would 
further investigate our importation practices, as they relate to steel, 
and verify whether or not our current trade agreements, treaties, and 
laws are being violated in any way. I applaud this effort, because it 
provides us with another resource for getting reliable information that 
is necessary for our assessment of the national economy.
  Lastly, the resolution asks the Administration to provide us with a 
report, early next year, detailing what steps should be taken to ensure 
the enforcement of our laws and the protection of our steel industry. 
Hopefully, this report can be used to start a bipartisan and 
cooperative relationship with the Administration that can be used to 
make better foreign policy decisions for the benefit of all of our 
industries.
  While we do live in a global economy, we are still a nation of laws--
laws that must be respected and enforced by all who encounter them. I 
urge all of my colleagues to support this resolution and the American 
worker.

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