[Congressional Record Volume 149, Number 37 (Friday, March 7, 2003)]
[Extensions of Remarks]
[Page E402]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             TARIFF RELIEF

                                 ______
                                 

                        HON. DENNIS J. KUCINICH

                                of ohio

                    in the house of representatives

                        Thursday, March 6, 2003

  Mr. KUCINICH. Mr. Speaker, on the one-year anniversary of the 
President's decision to impose temporary tariff relief on behalf of the 
domestic steel industry under Section 201 of the Trade Act, I speak in 
strong support of the tariffs and their continuation for the full 
three-year period ordered by the President.
  Between 1997 and 2002, America's steel industry was under attack by 
foreign companies illegally dumping steel into the American economy, 
sending 35 steel companies into bankruptcy and costing 54,000 industry 
employees their jobs.
  After a seven-month analysis, the International Trade Commission made 
a unanimous determination that the steel industry had suffered serious 
injury as a result of the surge of imports and voted to recommend a 
remedy.
  One year later, this remedy is working and must be continued. Since 
the Section 201 relief was implemented, the industry is beginning to 
see signs of a recovery: domestic producers have experienced 
incremental improvements in revenues, operating income, and capacity 
utilization.
  The tariffs have also caused a modest price recovery in the industry. 
Prices for hot rolled steel rose from historic lows of only $210 per 
ton in December 2001 to around $300 per ton today. But even so, prices 
for all major flat rolled products are still below 20-year historical 
averages.
  Additionally, the industry has made significant progress toward 
restructuring and consolidation. The International Steel Group (ISG), 
which came into existence following its purchase of LTV, has agreed to 
acquire the assets of Bethlehem Steel. US Steel announced plans to 
purchase National Steel. Section 201 relief, if allowed to run its 
course, will result in a more competitive domestic industry.
  The tariffs were a good start, and they must be allowed to continue. 
The United States has finally made clear that it is no longer willing 
to serve as the World's Steel Dumping Ground. The United States has 
also made clear that the national security of our country requires a 
strong and viable domestic steel supplier base. Only the continuation 
of the 201 tariffs will mitigate the harm of unfairly traded imports 
and assist the industry in a critical recovery. Keep the steel tariffs 
working!

                          ____________________