[Congressional Record Volume 149, Number 69 (Friday, May 9, 2003)]
[Extensions of Remarks]
[Page E924]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          INTRODUCTION OF THE STRATEGIC MATERIALS ACT OF 2003

                                 ______
                                 

                           HON. SCOTT McINNIS

                              of colorado

                    in the house of representatives

                          Friday, May 9, 2003

  Mr. McINNIS. Mr. Speaker, today I am introducing the Strategic 
Materials Act of 2003, legislation that would ensure that we retain the 
ability and capacity to produce strategic metals, so important to our 
defense and many other vital industries in the United States.
  I am a big supporter of free trade, but I also understand that the 
United States must take care that it does not become completely and 
totally dependent on another country for materials that could be vital 
to our defense. One such class of materials for which I believe we need 
to take care to maintain the capacity to produce is the raw material 
used to make titanium, and other nickel-based alloys, that are 
absolutely vital to maintaining our military, as well as important to 
our aerospace industry and other areas of our economy as well. Let me 
be clear, as a supporter of free trade, I do not suggest the U.S. erect 
barriers to the trade of these materials, I just suggest that we should 
not unilaterally dismantle and offer preferences to the importation of 
these specific materials. My bill will ensure that these specific 
import-sensitive strategic materials are not eligible for Generalized 
System of Preferences or GSP designation.
  The GSP designation is designed to promote economic growth and 
development in designated developing countries, and I support using 
trade as a means to stimulate a developing country's exports and 
economy. Trade can be a better way to provide assistance, because it 
helps to develop a country rather than just providing direct aid. That 
said, I have concerns that GSP is not appropriate for certain strategic 
materials, especially given that other countries already have 
significant market share in some of these materials. Extending GSP to 
these strategic materials could very well mean the United States loses 
the capacity to produce these materials domestically, as well as lose 
jobs. The reason for GSP, to provide assistance to develop an export 
industry in a developing country, does not appear appropriate when a 
foreign country or countries already control a significant share of the 
U.S. market.
  The legislation I am introducing today sends a clear message that, 
given the importance of maintaining a strong military and the 
importance to other sectors of the economy, we should not hasten to 
offer preferences, for that risks complete dependence on foreign 
countries for strategic materials like titanium sponge--the basis for 
titanium. We must take care we do not use a program designed to assist 
developing countries' trade to inadvertently assist the demise of our 
domestic capacity to produce these materials that help make our 
military the strongest in the world.

                          ____________________