[Congressional Record Volume 151, Number 144 (Thursday, November 3, 2005)]
[Extensions of Remarks]
[Pages E2261-E2262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               AMERICAN MANUFACTURING COMPETITIVENESS ACT

                                 ______
                                 

                          HON. JOE KNOLLENBERG

                              of michigan

                    in the house of representatives

                       Thursday, November 3, 2005

  Mr. KNOLLENBERG. Mr. Speaker, today I, along with 17 other 
bipartisan, original cosponsors, am introducing the American 
Manufacturing Competitiveness Act (AMCA). This bill will help our 
manufacturing companies and their workers in a time of need. Right now, 
America's manufacturers are facing unprecedented international 
competition so it's critical that we pursue policies that make American 
manufacturing industries the strongest in the world.
  In order to be competitive on the global market, our manufacturing 
base has to have access to timely supplies of competitively priced raw 
materials. Our manufacturers have to sell their goods at globally 
competitive prices, so they need to get their inputs at globally 
competitive prices too.
  The problem is excessively high raw material prices are hurting our 
manufacturers. For example, U.S. steel prices are now the highest in 
the world. As just one example, the price for hot-rolled coil is over 
$100/ton higher than anywhere else in the world. When the costs of 
inputs for our manufacturing base are higher than the rest of the 
world, it undermines their ability to compete.
  Government policies are part of the problem. For example, there are 
now over 150 different import restrictions covering over 20 steel 
products from over 30 nations. Some of these have been in effect since 
the 1980's, and cover steel products that are more expensive here than 
anywhere in the world. These restrictions can cause large distortions 
in the U.S. market for raw materials, and can inflict harm on the 
manufacturers and workers who need those materials to make their 
products. They hobble our manufacturers in tight markets, and choke off 
our larger manufacturing base.
  However, the astonishing reality is this harm to our manufacturing 
base is being ignored when decisions about import restrictions are 
made. The International Trade Commission (ITC) and Department of 
Commerce (DOC) don't even allow the industrial users any meaningful 
participation in the process. Think about this. American companies are 
directly impacted by these decisions, but they are not even considered 
in the process. In fact, foreign producers have more rights in this 
process than our own American industrial users. This is especially 
disturbing since steel consuming jobs outnumber steel producing jobs by 
over 60 to 1. This is extremely unfair and unwise.
  I testified at the ITC twice earlier this year during hearings on 5-
year sunset reviews for duties on hot-rolled steel and stainless steel 
sheet and strip. Duties on these types of steel had already been in 
place for 5 years, and now the ITC was required to make a decision 
about whether they should continue. Companies who need these types of 
steel testified at these hearings too and provided information about 
the trouble they have getting the quantity and quality of the steel 
they need at competitive prices. When a manufacturing company can't get 
the raw materials it needs, that causes damage to the company 
particularly when they have to deliver their products just-in-time. 
Because of these duties, the industrial users are suffering damage.

  I also introduced House Resolution 84, which urges the ITC to 
consider the effects of duties on industrial users during these sunset 
reviews. This resolution has 48 bipartisan cosponsors. All we were 
asking was that the ITC consider the effects of these duties on the 
consuming companies.
  When the report explaining the ITC's decision to keep the duties in 
place came out, I was shocked that there was no evidence at all that 
the ITC considered the effects of the duties on the industrial users. 
Nothing. These are American companies with American workers, but there 
was no evidence the ITC listened at all.
  Furthermore, during one of the hearings a representative for the 
steel industry stated ``the Commission is precluded from considering 
the impact of imports of the subject merchandise on domestic steel 
consumers in determining whether the antidumping order should be 
revoked.'' This person was saying in effect that the ITC is not even 
allowed to consider the effects of their decisions on our manufacturing 
base. This is just wrong and it must be addressed to prevent 
unnecessary damage to our manufacturing base.
  Antidumping and countervailing duty laws are necessary and they're in 
the interest of the United States, when applied in an objective and 
fair manner, to prevent unfair pricing and subsidized competition. But 
it's not fair and it's not acceptable when American companies being 
hurt by duties on imports can't even be considered in the process.
  Mr. Speaker, basic fairness and common sense require us to change the 
law. My bill will address this problem by giving industrial users legal 
standing to participate in the antidumping and countervailing duty 
processes. It will require the ITC and the DOC to consider the 
information provided by the businesses that use these products. This is 
only fair. Furthermore, the process for imposing duties will remain the 
same, with the addition of a simple test that looks at the downstream 
harm. Under this bill, when making decisions on import restrictions, an 
economic impact test would be conducted by the ITC to determine the net 
effect on the American manufacturers affected by those decisions. In 
order for a restriction to

[[Page E2262]]

be imposed, the test must show it would provide greater benefit than 
harm to U.S. interested parties in that case. If not, it can't be 
imposed. This is only fair, and makes sure our policies are 
economically sound.
  I urge my colleagues to join me in supporting this important bill to 
help our American manufacturing base be as competitive as it can be.

                          ____________________