[Congressional Record Volume 145, Number 48 (Thursday, March 25, 1999)]
[Extensions of Remarks]
[Pages E594-E595]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   PROVIDING FOR CONSIDERATION OF H.R. 975, REDUCING VOLUME OF STEEL 
   IMPORTS AND ESTABLISHING STEEL IMPORT NOTIFICATION AND MONITORING 
                                PROGRAM

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                               speech of

                            HON. BRIAN BAIRD

                             of washington

                    in the house of representatives

                       Wednesday, March 17, 1999

  Mr. BAIRD. Mr. Speaker, I rise today to express my support for this 
legislation, that seeks to address the serious steel dumping problem 
which has resulted in the loss of over 10,000 steelworker jobs 
nationwide; but also to inform my colleagues about a concern that I 
have about some potential impacts of such legislation.
  Mr. Speaker, I do believe that the rapid escalation of steel imports 
into the United States over the past eighteen months has reached crisis 
levels. Reports indicate that steel imports increased by 72 percent 
from November of 1997 to November of 1998, and that increase has led to 
staggering layoffs and reductions in work hours for those working in 
our nation's steel industries. Those layoffs and work stoppages have 
seriously concerned me and should alarm all of us.
  During that period, imports from Japan were up 260 percent, imports 
from Russia advanced 262 percent, and those from Korea increased by 
over 220 percent. Imports from Brazil, Ukraine, China, Indonesia, and 
South Africa have steadily grown. In some cases, foreign manufacturers 
have been shown to have sold steel for well under the cost of 
production.
  It is clear that the United States must take strong action to ensure 
the enforcement of our trade policies. Mr. Speaker, I support policies 
that enhance U.S. trade partnerships, but I also believe that we must 
demand fair and responsible trade behavior from those partners. Our 
nation must not stand idle while our laws are flagrantly violated. 
Therefore, I strongly support the intent of H.R. 975 and the measures 
that the legislation would implement to control steel import levels at 
pre-crisis levels.
  However, my concern lies in the potential impact that this 
legislation may have on a manufacturer in my district--a manufacturer 
that would face legitimate hardship under the current version of the 
bill.
  The district which I represent, Washington's third district, includes 
several steel and aluminum production facilities. One of these 
facilities is The Broken Hill Proprietary Coated Steel Corporation (BHP 
CSC), located in the city of Kalama. In December of 1997, BHP began 
production of cold rolled full hard steel and galvanized sheet steel 
that is frequently used in the metal building and construction 
industries. The facility annually utilizes approximately 350,000 tons 
of hot band steel in the manufacture of over 300,000 tons of bare and 
painted sheet steel products.
  Unfortunately, I have been informed that availability of the hot band 
steel needed for this plant is limited from domestic producers. The 
technologies utilized in the manufacturing process at the Kalama 
facility apparently require that very specific requirements be met for 
the quality, physical properties and size of the hot band steel used as 
a raw material, and

[[Page E595]]

most domestic producers of hot band steel are reportedly unable to meet 
the demands of the Kalama plant.
  Therefore, BHP CSC has relied on imported hot band steel for the 
majority of their needs since beginning operations in 1997, and the 
primary source of those imports has been the BHP parent company, 
located in Australia. That Kalama plant has been the exclusive 
recipient of imports to the U.S. from the company's Australian parent. 
This plant has not been used as a conduit for large quantities of steel 
imports to be used by other manufacturers.
  My concern deals with the consequences of imposing a strict quota on 
steel imports. In its current form, the legislation only cuts back 
steel imports to levels existing in July of 1997. This restriction is 
not only reasonable, it is necessary, and to be clear, I think we need 
this legislation. However, it may also severely limit the availability 
of the high-grade hot band steel required by the Kalama BHP facility.
  As a consequence, Mr. Speaker, the productive capacity of the plant 
will be significantly diminished, and the limits may, in fact, result 
in the loss of jobs in the steel industry. Now, I can't imagine that 
supporters of this legislation would find job losses to be an 
acceptable result of a United States response to illegal trade 
activities.
  And Mr. Speaker, I want to take a moment to call your attention to 
why this facility is so important to the economic survival of this 
corner of rural America. This economically disadvantaged area in 
Southwest Washington was, until recently, primarily dependent on 
natural-resource based industries for its economic survival. As a 
result of increasing limitations on timber cutting and shrinking salmon 
runs, the workforce needs in Cowlitz County have been scaled back again 
and again. Only six years ago, this area faced double-digit 
unemployment rates, and still has one of the highest rates in the 
nation.
  So, Mr. Speaker, when we pass legislation that may affect the job 
security of over 250 hard-working people in Cowlitz County, I get 
gravely concerned. That's why I immediately began working on this issue 
when I was sworn into office at the beginning of this year.
  And it is also the reason that I drafted an amendment to this 
legislation to provide limited waiver authority for companies with 
legitimate barriers to obtaining steel products for their manufacturing 
processes from domestic sources, to import limited amounts of steel in 
order to continue operations. My amendment would have permitted the 
Secretary of Commerce to establish a certification process to determine 
whether or not a manufacturer has sincere impediments to obtaining 
adequate quantities of steel raw materials; and, in such cases, to 
waive the import restrictions in only those cases.
  Unfortunately, the rule providing for consideration of this 
legislation prevented me from introducing such an amendment, and 
precluded members from having the opportunity to vote on a measure that 
I believe would make a minimal, but desperately necessary adjustment to 
the overall bill. In fact, that rule prevented the introduction of any 
amendments.
  Although I find this disappointing, I have received assurances from 
my colleagues that efforts will be made to address this situation as 
this legislation moves through the process, and I will continue to 
support those efforts.
  As a Member of Congress, I have a responsibility to ensure that what 
we do here in Washington, DC, benefits my constituents in Washington 
State, and also to help safeguard our national interests. I believe 
that the enactment of this legislation, as perfected by my amendment, 
would serve both of these purposes. Although still imperfect, I will 
act today to enforce the trade policies of the United States, while 
continuing my efforts to protect the economic security of all 
steelworkers nationwide as the legislative process moves forward.
  I ask my colleagues to support these efforts as we work with the 
other body in considering this measure. We all have an interest in 
keeping jobs in the United States, so let's work together to take the 
strongest, most appropriate measures possible to bolster this industry.
  Of equal importance, I call on the President to address this 
situation before this flood of steel imports overwhelms what remains of 
the United States steel industry--an industry that has retooled to 
become one of the most efficient in the Nation. In the future, as a 
result of this measure, I hope that we can take swifter, and more 
effective actions when sudden surges in foreign exports to our nation 
unfairly threaten our industries.
  Mr. Speaker, I want to again thank my colleagues Mr. Visclosky and 
Mr. Traficant, and many others, for their tremendous, persistent work 
in bringing public attention to this issue and for helping bring this 
measure to the full House for our consideration.

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