[Congressional Record Volume 145, Number 88 (Monday, June 21, 1999)]
[Senate]
[Pages S7312-S7313]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        STEEL IMPORT LIMITATIONS

  Mr. SPECTER. Madam President, I have sought recognition to speak 
relatively briefly on the steel import limitation bill; a cloture vote 
on the motion to proceed is scheduled tomorrow at 12:15. I will be 
engaged in committee hearings at that time, so I have sought a few 
minutes this afternoon to express my support to impose cloture on the 
steel import limitation bill.
  Similar legislation passed the House of Representatives by a vote of 
289-141. While this is a strong measure, a so-called quota bill, I 
believe it reflects the necessity that strong action be taken to 
enforce U.S. trade laws to stop an avalanche of dumping by foreign 
countries.
  We have seen the disintegration of the American steel industry, the 
decimation of the American steel industry by unfair foreign imports. 
Twenty years ago, in 1979, approximately 453,000 steelworkers were 
employed. Today that figure is about 160,000. Some $50 billion has been 
invested by the American steel industry to modernize, but there is no 
way that the American steel industry can compete with dumped goods. 
When I say ``dumped goods'' I mean goods which come into the United 
States from a number of countries--from Russia, from Brazil, from 
Ukraine, from South Africa, from China--where they are sold for less 
than they are sold for in the exporting country; that is, sold for less 
than the United States and sold for less than Russia, which is sending 
them to the United States, and sold for less than the cost of 
production.
  The situation requires a change. I will quote extensively from a 
letter sent by 12 executives from American steel companies to the 
Secretary of Commerce, responding to a comment by the Secretary of 
Commerce last week that the steel crisis is over--so said Secretary 
Daley. This letter, dated June 18, 1999, from the executives of 12 
American steel companies, says, in pertinent part, the following:
       The steel crisis is still very much with us. Imports 
     volumes are down from the disastrous levels of 1998 but are 
     still very high by historic standards. The surge of imports 
     in 1998 caused inventories to balloon to extremely high 
     levels. These inventories have seriously depressed prices up 
     until the present and will continue to do so until these 
     stocks have been worked down. Moreover, cold-rolled imports 
     are up dramatically through April of this year, 24% above the 
     level of the first four months of last year. Imports of cut-
     to-length plate are up dramatically--25% year-to-year for 
     this period.
       Prices remain extremely depressed. The producer price index 
     for all steel mill products is down 9% (1999:Q2/1998/Q2). 
     This is the largest decline in nearly 20 years. Prices for 
     hot-rolled sheet, cold-rolled sheet and plate are down 11% 
     and 15% respectively.
       Operating rates have plunged from 93% to 80% between 
     January and December 1998 and have remained at that depressed 
     level through the first half of 1999. The decline in 
     operating rates equates to about $2 billion in lost revenue 
     in the second half of last year. On an annualized basis, a 
     10% change in operating rate equals about $5 billion in 
     revenue.
       The depressed prices and operating rates caused most 
     American steel companies to post losses in the most recent 
     quarter. Several steel companies have been forced into 
     bankruptcy. Thousands of those who were laid off due to 
     unfairly traded imports are still out of work. Many thousands 
     have seen their workweeks shortened and are still not back to 
     full time.
       For our industry, therefore, this crisis is very real.
  The steel industry started some seven actions for antidumping, and 
six of those were subjected to suspension agreements by the Department 
of Commerce, to the detriment of the steel companies.
  I ask unanimous consent this chart on steel imports and suspension 
agreements be printed at the conclusion of my statement.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See Exhibit 1.)
  Mr. SPECTER. The result of steel import limitations, so-called 
quotas, is a drastic remedy. We have seen not only steel but other 
industries in the United States victimized by the failure to enforce 
U.S. trade laws.
  For the past 15 years, this Senator has proposed legislation which 
would authorize equitable relief to provide for enforcement of the U.S. 
trade laws. At the present time, if complaints are filed with the 
International Trade Commission, it takes up to a year or longer to have 
those matters resolved. An equitable action, a court of equity, would 
result in having these matters resolved in the course of a few weeks. 
Until that is done, it seems to me we need to take some very decisive 
action.
  That is why I have cosponsored the steel import limitation bill. I 
urge cloture on the motion to proceed be invoked when this matter comes 
up for a vote tomorrow at 12:15.
  Mr. DORGAN. Will the Senator yield?
  Mr. SPECTER. I yield.
  Mr. DORGAN. I intend to support the legislation the Senator just 
described. The Senator from Pennsylvania described a condition with the 
steel industry that relates to, among other things, the lack of 
enforcement of trade laws.
  In North Dakota, we don't produce steel. We don't have a foundry that 
produces a substantial amount of steel. We don't have steelworkers. 
However, we have farmers in almost exactly the same set of 
circumstances. At least part of that reason is because of bad trade 
agreements, or trade agreements that have not been enforced.
  A number of Senators, I am sure, will support the initiative 
tomorrow. I think tomorrow is actually a vote on the motion to proceed. 
I believe it is important to stand up for our economic interests.
  It is not about protectionism; it is about standing up for our 
country's economic interests and making sure we enforce trade laws. If 
someone is dumping in our country--whether it is steel or wheat--we 
ought to expect, as a steel industry or as family farmers, that our 
Federal Government will take action to enforce our trade laws.
  I agree with the statement of the Senator from Pennsylvania. I think 
a number of Senators, tomorrow, will be in agreement on that basic 
premise.
  I thank the Senator for yielding.
  Mr. SPECTER. If I may respond briefly, I thank my colleague from 
North Dakota for that statement.
  I had presented legislation on equitable relief before the Finance 
Committee. The Senate's colleague, Senator Conrad, is a member, and he 
made the same statement about the similarity in wheat.
  At lunch today, Conrad Burns was talking about similar problems in 
Montana. I will send a copy of the equitable legislation which I think 
would cover many products. We will have an overwhelming response in 
this body so that our trade laws are enforced, consistent with GATT, 
but put teeth in an enforcement mechanism which is not present today.
  I yield the floor.

                            EXHIBIT 1.--STEEL IMPORTS AND SUSPENSION AGREEMENTS--SUMMARY OF FLAT-ROLLED SUSPENSION AGREEMENTS
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                                                                                    By metric tons--              Dollar amount per metric tons--
                                                                               -------------------------------------------------------------------------
    Year of filing and product             Country           Final adjusted      Suspension   Estimated                                        Current
                                                            margins (percent)    agreement    volumes w/    Agreement minimum    Estimated      import
                                                                                  volumes       orders            price          fair price     value
--------------------------------------------------------------------------------------------------------------------------------------------------------
1996--Plate CTL...................  China...............  17 to 129...........      141,000            0  $308................         $505         $397
1996--Plate CTL...................  Russia..............  54 to 185...........       94,000        6,466  $275 to $330........          505          352
1996--Plate CTL...................  S. Africa...........  26 to 51............           NA        3,150  NA..................          505          331
1996--Plate CTL...................  Ukraine.............  81 to 238...........      148,520       32,151  $314 to $466........          505          516
1998--Hot-Rolled..................  Russia..............  71 to 218...........      750,000       28,933  $255................          397          236
1998--Hot-Rolled..................  Brazil..............  51 to 71............      295,000          310  NA..................          397          227
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[[Page S7313]]

  Mr. HELMS addressed the Chair.
  The PRESIDING OFFICER. The Senator from North Carolina is recognized.

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