[Congressional Record Volume 145, Number 18 (Tuesday, February 2, 1999)]
[Extensions of Remarks]
[Page E105]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                  FASTA, THE ``FAIR STEEL TRADE ACT''

                                 ______
                                 

                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                       Tuesday, February 2, 1999

  Mr. TRAFICANT. Mr. Speaker, our foreign competitors have been dumping 
steel in America below market value for well over a year. This 
practice, which has been allowed to continue unencumbered by the 
Clinton Administration, has had a devastating effect on the U.S. steel 
industry and U.S. steelworkers. I have taken numerous actions, alone 
and in conjunction with the Congressional Steel Caucus, to urge the 
Administration to change its backward trade policy and remedy the 
current crisis. These pleas have fallen on deaf ears. It is time for a 
clear and decisive action. Therefore, I am introducing FASTA, the 
``Fair Steel Trade Act'' today to force the Administration to impose 
swift and severe penalties on those countries that have flagrantly and 
repeatedly violated our trade laws. Specifically, FASTA will impose a 
three-month ban on imports of steel and steel products from Japan, 
Russia, South Korea and Brazil.
  Steel dumping in America has become a global event. In the first 11 
months of 1998, steel imports are up 167 percent from Japan, 60 percent 
from Russia, up 112 percent from South Korea, up 68 percent from the 
Ukraine, up 150 percent from Australia, up 105 percent from South 
Africa, up 114 percent from Brazil and up a whopping 586 percent from 
Indonesia.
  In January, it was reported that a Congressionally-mandated report on 
foreign steel dumping would finally be released from the 
Administration. It was rumored that the report would outline the 
Administration's plans for helping the U.S. steel industry cope with 
cheap steel imports, but would not include any new initiatives beyond 
the Administration's previous efforts. Those efforts have consisted 
mainly of expediting complaints from U.S. steel companies and 
negotiating with countries such as Russia and South Korea.
  In response to this rumor, I wrote a letter to President Clinton 
urging him to reverse course and take drastic action to stem the tide 
of cheap steel imports: ``During your two campaigns for the Presidency 
and throughout your Administration you spoke eloquently about using 
U.S. trade policy to build a bridge to the 21st century for American 
workers. That bridge is crumbling under the weight of millions of tons 
of illegally dumped foreign steel. If your Administration does not take 
extraordinary and decisive action, hundreds of American communities and 
thousands of American families will enter the 21st century in 
poverty.'' The fact is, the Administration has been reviewing the 
dumping of foreign steel below cost in our market. It is crystal clear 
that anti-dumping statutes have been repeatedly violated. It's time to 
stop reviewing and start acting. I made it clear to the President in my 
letter that maintaining his present course of action falls woefully 
short of the type of decisive action that is warranted by this 
emergency.
  Unfortunately, the rumors about the report proved true. In essence, 
the report demands that Japan curb its steel shipments to America 
though ``voluntary export restraints.'' Idle threats and voluntary 
self-policing restraints do not a trade policy make. What's worse, the 
report makes no mention of the other six countries that continue to 
dump steel in our market.
  The report also provides for tax relief for steel companies. 
According to the report, the steel industry will have greater ability 
than other industries to receive tax refunds to offset its losses. 
Under current law, companies can receive tax refunds on their losses 
for the previous two years of taxes paid. The steel industry is now 
able to obtain refunds for the previous five years. This news, however, 
was not enough to save Bethlehem Steel. After the report was made 
public, Bethlehem Steel announced that it will close two stainless 
steel and strip-metal plants, thereby adding 540 American workers to 
the unemployment roll.
  The tax relief provision is estimated to cost $300 million over five 
years. While I support relief for the steel industry, I am livid that 
the President expects the American taxpayer and the steelworkers who 
have lost their jobs to pay for the illegal actions of our foreign 
competitors. Perhaps if the Administration enforced our trade laws for 
a change, and penalized dumping, we would collect enough revenue to pay 
for tax relief for our domestic steel industry.
  It has become obvious to me that this Administration is unwilling to 
take the type of definitive action necessary to deal with this serious 
crisis. Voluntary self-policing is like putting a kid in a candy store 
and asking him not to eat. No disincentives, no repercussions--it's 
strictly voluntary. Promises won't help the 10,000 steelworkers who 
have lost well-paying jobs and promises won't stop industry giant 
Bethlehem Steel from closing the doors on two of its plants.
  Despite repeated calls from steelworkers and Members of Congress such 
as myself, the Administration has elected to pursue a course of limited 
and meek actions. The time for negotiating, monitoring and litigating 
are long past. Tax breaks and more retraining programs will not put a 
single steelworker back to work.
  It is now incumbent upon my colleagues in Congress--Democrats and 
Republicans--to take up the banner and fight to ensure that the steel 
industry, an industry vital to America's economy and national security, 
is not decimated by illegal competition. Cosponsor and pass FASTA 
today.

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