[Congressional Record Volume 148, Number 18 (Wednesday, February 27, 2002)]
[Extensions of Remarks]
[Page E215]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            REMEDY SELECTION FOR THE 201 STEEL INVESTIGATION

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                          HON. SONNY CALLAHAN

                               of alabama

                    in the house of representatives

                      Wednesday, February 27, 2002

  Mr. CALLAHAN. Mr. Speaker, within the next few days the President 
will make a decision on the appropriate course of action in response to 
the International Trade Commission (ITC) findings on steel imports. I 
am grateful to the President for addressing this matter and hope he 
will stay the course on the issue of steel imports and keeping our 
trading partners interested in negotiations on global overcapacity 
reductions.
  Steel is an important part of the economy in Alabama. There are over 
20,000 jobs directly tied to steel in our state. Alabama is home to 
some of the most efficient steel makers in the world. A mill in my 
district can turn scrap into high grade steel in a matter of hours. It 
can supply steel for ship building as well as a number of other 
products from street lights to bridges.
  All the steel companies in the U.S. are suffering. The accepted 
reason for this downturn is the overproduction of steel world-wide. The 
ITC and our trading partners agree there is a real problem. Everyone 
recognizes that global over capacity is the root cause, and we are 
meeting with other steel producing nations to do something about it.
  But the solution will take years to develop, and in the meantime the 
open borders of the U.S. are drawing a lot of this overcapacity and 
damaging our domestic industry. In the short run we need to stabilize 
the domestic market, while continuing global trade talks.
  A four-year time out, is not a lot of time to correct this situation. 
The steel industry has asked for a four-year tariff starting at 40 
percent. Each year that tariff will be reduced. This tariff will do two 
things, first it will send a message that we are very serious about 
this problem, and second it will demonstrate that these trade talks are 
not for show. I am reasonably certain that the talks would not be so 
well attended without the threat of tariffs.
  This tariff will allow the U.S. market to stabilize and provide time 
to see if these global talks will bear fruit. The President should 
provide this assistance, which is perfectly legal under the WTO, and 
which is necessary to bring some stability to the steel markets.
  The U.S. steel industry underpins our basic manufacturing base. We 
need to be very careful about allowing an industry that is so essential 
to our infrastructure and security to be unjustly damaged. I hope the 
President will do the right thing and use the tools provided in the WTO 
to give some breathing room to the domestic industry. I will support 
him in a strong action.

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