[Congressional Record Volume 150, Number 57 (Thursday, April 29, 2004)]
[Senate]
[Pages S4678-S4679]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
OUTSOURCING AND CLOW VALVE
Mr. HARKIN. Mr. President, after 2\1/2\ years of a largely jobless
recovery, the current administration is on track to be the first in
over six decades actually
[[Page S4679]]
to lose jobs during its 4-year term. It is particularly alarming that
this country has lost more than one in seven of its manufacturing jobs
since this administration took office. More than one in seven.
One reason is outsourcing. We have been seeing good, high-wage
manufacturing jobs transferred overseas for a number of years. But
outsourcing now has accelerated. It has spread to ``knowledge-based
jobs''--programming, auditing, accounting, engineering, design,
telemarketing, animation, editing, transcription, legal assistance,
call centers and even core research.
Some economists have argued over the years that free trade helps the
United States to concentrate on creating high-wage, high-value-added
jobs here in America. But now those jobs are being exported, too. The
old rules of comparative advantage have been exploded.
As we all know by now, the President's annual economic report, signed
by Mr. Bush, explained why we should be celebrating the outsourcing and
off-shoring of American jobs. Gregory Mankiw, chairman of the
President's Council of Economic Advisors, summed up the report. He said
that ``outsourcing is a growing phenomenon, but it's something that we
should realize is . . . a plus for the economy.''
Yes, you heard that right: Outsourcing is ``a plus for the economy.''
Outsourcing of U.S. jobs, however, is just one side of the coin. The
other side of the coin is U.S. jobs that are lost because this
administration refuses to enforce our existing trade laws--for example,
existing laws that protect against sudden surges of imports from abroad
which harm particular businesses or sectors here in our country. This
refusal threatens U.S. manufacturers and destroys American jobs.
Let me offer one vivid example:
Clow Valve Company has operated in the town of Oskaloosa, Iowa, since
1878. It manufactures iron pipes, water hydrants and other foundry
products. If there's a fire hydrant on your block--and there should be
one under most city codes--chances are excellent that it was made by
Clow Valve Company.
The company was acquired by McWane, Inc., of Birmingham, Alabama in
1985. McWane owns similar facilities in several other states, including
Alabama, New York, Texas, Pennsylvania, Missouri and Tennessee,
employing some 7,000 workers.
Last year, McWane, Inc., faced a near tripling of Chinese imports of
waterwork pipes compared to the previous year, with Chinese product
being sold at prices that severely undercut American producers.
Obviously, continued expansion of sales by Chinese companies at this
rate could cause serious market disruption. It could threaten all 7,000
jobs in these plants, including the 358 in the Clow facilities in
Oskaloosa, IA.
Nonetheless, President Bush has steadfastly refused to use his
authority under Section 421 of the Trade Act of 1974 to restrain this
surge of imports, even though such a step was unanimously recommended
by the International Trade Commission (ITC) last December. I wrote to
the administration on two occasions, once to the ITC and once to the
President himself, urging that our trade officials utilize existing
laws that were enacted for the very purpose of temporarily protecting
American jobs from sudden surges of imported products.
The President's refusal to enforce our trade laws has profound
consequences. In Oskaloosa, it could mean the loss of some or all of
the 358 good-quality, high-paying jobs at the Clow Valve Company. In
turn, that would have a devastating impact all across Mahaska County.
Bear in mind that Clow Valve is now the single largest employer located
in the county. It is an employer with deep roots in the community. I
imagine there might be some bewilderment among people there about the
refusal of the Bush Administration to stand up and defend those jobs.
Let me summarize the basic facts:
We have a clear case of harmful trade practices on the part of the
Chinese--flooding the U.S. market with cut-rate waterwork pipes.
In December, the United States International Trade Commission ruled
that a surge in imports of Chinese waterwork pipes had caused market
disruption and material injury to domestic manufacturers such as Clow
Valve Company.
The Commission was unanimous in its conclusion that imports from
China should be restrained pursuant to section 421 of the Trade Act of
1974.
The Commission was unanimous in its prediction that, without
implementation of an effective relief program, the U.S. waterwork pipes
industry may have to close plants and lay off workers.
And yet, the White House refused to act. Which leads me to ask: Whose
side are they on?
Mr. President, it is clear to me that the jobless recovery here in
the U.S. is not an accident. It is the result of a productivity surge
that has benefited corporate profits, not workers' paychecks. It is the
result of corporate America's enthusiastic embrace of outsourcing and
off-shoring jobs, with the blessing and encouragement of the Bush
administration. And it is the result of the refusal of this
administration to enforce our trade laws--its refusal to stand up for
American workers, including in the face of seriously harmful trading
practices from abroad.
We cannot build a sustainable recovery by exporting jobs, driving
down U.S. wages to match foreign wages, and allowing nations like China
to flood our market with cheap imports.
No, a true recovery must include all Americans. It can only be built
on a foundation of good jobs and good wages--here in America, not
overseas. And it can only be sustained if the administration, at long
last, is willing to enforce our trade laws and stand up for American
workers.
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