[Congressional Record Volume 148, Number 18 (Wednesday, February 27, 2002)]
[Extensions of Remarks]
[Page E213]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    RETAINING A STRONG AND HEALTHY STEEL INDUSTRY IN U.S. IS A MUST

                                 ______
                                 

                           HON. RALPH REGULA

                                of ohio

                    in the house of representatives

                      Wednesday, February 27, 2002

  Mr. REGULA. Mr. Speaker, I would like to commend the President for 
initiating his three-prong program to address the steel import crisis. 
This crisis, caused by a worldwide over capacity of steel making is 
slowly destroying our domestic steel industry. The increased level of 
imports, often subsidized by foreign governments, keeps driving steel 
prices down. Not even the most efficient steel mills in the U.S. are 
able to make money when steel is priced so low. As of this week, 
thirty-one steel companies have declared bankruptcy and over fifty 
steel-making and related plants had been shut down.
  The President's steel plan includes the Section 201 investigation 
initiated last June and efforts to negotiate a reduction of worldwide 
steel making capacity with foreign nations. The key element in the 
President's plan is the 201 investigation. The International Trade 
Commission (ITC), which completed the 201 investigation last fall, 
unanimously found that the level of steel imports coming into the U.S. 
was injuring the domestic steel industry. Now it is up to the President 
to implement a meaningful remedy. The industry and its workers are 
asking for at least 40 percent tariffs across the board. Tariffs would 
provide the most immediate relief to the industry allowing prices to 
recover. Tariffs would also send a clear message to our trading 
partners that this U.S. is not the dumping ground for all the world's 
excess steel.
  Our steel companies need a ``time-out'' from the constant flow of 
low-priced imports. Strong tariffs will provide such a ``time-out.'' 
Domestic steel companies and their workers have downsized and 
restructured and they continue to do so. One example is Republic 
Technologies International, which has facilities in my Congressional 
District. Republic had to file for bankruptcy protection. In order to 
keep operating in this very difficult market, all workers had to take a 
15 percent pay reduction and additional cost cutting measures are being 
implemented to reduce costs another 20 percent. Overall employment has 
fallen by 20 percent recently. The type of 201 remedy will directly 
impact how Republic will be able to restructure and come out of 
bankruptcy. If the President implements a strong remedy, investor 
confidence will increase and Republic will be able to preserve more 
jobs as it restructures. If the President imposes a weak remedy, 
Republic may face significant job cuts during its restructuring.
  As steel mills close, it is not just the steelworkers and their 
families that suffer. Steel company retirees will lose their retiree 
health benefits in many instances. Furthermore, every steelworker 
supports more than three jobs in other industries, from workers who 
make production equipment to those who process raw materials and move 
the steel products to market. Steel communities are also impacted by 
the loss of steelworker jobs because people buy less groceries and use 
less services. It is imperative that we retain a strong and healthy 
steel industry in the U.S. not only for our economic well-being but 
also to supply our national defense needs.

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