[Congressional Record Volume 148, Number 19 (Thursday, February 28, 2002)]
[Senate]
[Pages S1341-S1342]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              DUMPED STEEL

  Mr. SPECTER. Mr. President, I have sought recognition to comment on a 
meeting which has been held with President Bush and Members of Congress 
from steel States concerning the plight of the steel industry and the 
decision which the President is scheduled to make on or before March 6, 
2002. The President has initiated proceedings under Section 201, which 
activated an inquiry by the International Trade Commission. The 
International Trade Commission has made a recommendation that there be 
remedies to stop subsidized and dumped steel from coming

[[Page S1342]]

into the United States in violation of U.S. law and international trade 
law. The President granted our request for a meeting so that we could 
state to him our views on this important subject.
  The Senate Steel Caucus has 34 members from 24 States. The House 
Steel Caucus has 133 members. I was Chairman of the Senate Steel Caucus 
until Senator Jeffords made his famous declaration. Now I am Vice 
Chairman with Senator Jay Rockefeller serving as Chairman.
  Senator Rockefeller and I were at the meeting with the President, as 
were Senator Santorum, Senator Durbin, Senator Sessions, and 
Congressman English, Chairman of the House Steel Caucus. We presented 
the case to the President that this is really the critical stage, that 
it is not inaccurate to say at this time that it is a do-or-die 
situation.
  There have been tens of thousands--really hundreds of thousands--of 
jobs lost in the steel industry. There have been bankruptcies literally 
too numerous to count from the steel companies, and there has been an 
onslaught of steel coming into the United States which is subsidized 
and dumped.

  When the term ``dumping'' is used, it means that steel is sold in the 
United States at a price lower than it is sold, for example, in Brazil 
where it is manufactured. So it is a calculated effort to sell at a 
cost so low that it undercuts the legitimate costs of American steel, 
and the costs are customarily calculated at the cost of production, 
plus a reasonable profit. The steel which comes into the United States, 
in addition to being dumped, is subsidized very heavily by foreign 
governments, so an American steel company is compelled to compete 
against a foreign government. That is something you cannot compete 
with, leading to the characterization of the playing field, which is 
not level.
  We presented to the President the consideration that it really 
require what Commissioners on the International Trade Commission have 
recommended. The President said: Where did you come up with the idea of 
a 40 percent tariff for 4 years? The response was: Well, that is what 
the Republican members of the International Trade Commission said. That 
is necessary in order to give the American steel industry an 
opportunity to restructure itself.
  There have been very extensive conversations with Mr. Leo Gerard, 
President of the United Steelworkers of America, and Mr. Tom Usher, 
President of USX, regarding the steel tariffs. In discussing the 
remedy, one of the critical parts about imposing a tariff is that it 
will call upon the foreign steel companies to restructure their steel. 
There is excess capacity in the world at the present time, and it comes 
to the United States where it is dumped because we are a great market. 
We have an open market. We believe in free trade, and I believe in free 
trade. An essential ingredient of free trade is to not allow subsidies 
or dumping, which is illegal. Free trade also has the critical 
component of fair trade, which is a part of free trade.
  These considerations were presented. The issue arose as to what the 
impact would be upon the American consumer. It has been carefully 
calculated. A tariff of 40 percent would lead to a price increase on 
steel to around 8.4 percent, a negligible cost on the purchase of an 
automobile or a refrigerator. It is not going to change the American 
economy, but it is shortsighted for consumers to seek that kind of 
cheaper steel because we know for sure that if, as, or when the 
American steel industry is unable to meet domestic demands, we are at 
the mercy of foreign steel prices, which are going to go up. It is a 
boomerang consideration. It is not in the consumers' interest in the 
long run to have that kind of illegal competition come in and drive the 
American steel industry out of business.
  All of these arguments were presented to the President, a meeting 
which lasted for the better part of an hour. The President was 
noncommittal, subjective as to how he was regarding the arguments. He 
made a number of comments. I think it is fair to say that he was 
sympathetic to the arguments. He made the point that he was prepared to 
make the tough decision without regard to political costs or whether 
Europe was going to be mad over what the decision would be.
  President Bush has shown a remarkable tendency to be willing to make 
his own judgment, to go his own way. He has shown that in the War on 
Terrorism. He has sometimes been criticized for unilateralism by the 
United States, but he is a person who studies a situation very 
carefully, a very good listener who makes up his mind and then is 
prepared to make a judgment, in accordance with what his conscience 
says is in the national interest.
  Overall, I thought it was a very good meeting, and I am optimistic. 
It is hard to say much more than that without creating false hope or 
false impressions.
  Earlier in the day there was a rally on the Ellipse, which was 
calculated to be within earshot of the President. The speaker's stand 
was set up. The Chair was there, as were many of our colleagues in the 
Senate. We heard quite a number of speeches, and an enormous number of 
steelworkers, men and women, were there. The crowd was estimated to be 
at 25,000. I think that was a conservative estimate. Mr. Leo Gerard, 
President of the United Steelworkers of America, said they gave out 
18,000 tokens. They had to bus people into RFK Stadium--there was no 
place to park the buses--and have them take the subway. Even when the 
rally had run for almost an hour, there were still people streaming in.
  As I was on the speaker's podium and looked over at the South 
Portico, I could not tell if the President was there listening or 
not. However, I think he was within earshot. One of the great things 
about America is our right to assemble, even within earshot of the 
White House, as well as the right to freedom of speech and the right to 
petition the Government.

  This whole issue has had a very thorough hearing. It is a matter of 
great importance. It is a matter of importance to America to have a 
steel industry. Without a steel industry, what do you do for national 
defense in time of a national emergency? Without a steel industry, what 
do you do if you are at the mercy of foreign suppliers? We have laws to 
stop dumping in subsidy. They are not enforced.
  Years ago, I introduced legislation for a private right of action. It 
has been very difficult to get enforcement proceedings. Through the 
International Trade Commission, they are laborious. They can be upset 
easily. By the time they take effect, the critical period has passed. 
They have not been adequate.
  Now, that the President has introduced, to his credit, the Section 
201 proceedings, there is a chance for real action. Under the law, the 
decision has to be made by March 6, 2002, which is next Wednesday. To 
repeat, I am optimistic there will be a good result.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. SPECTER. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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