[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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