[Congressional Record (Bound Edition), Volume 145 (1999), Part 4]
[Extensions of Remarks]
[Pages 5023-5024]
[From the U.S. Government Publishing Office, www.gpo.gov]




   PROVIDING FOR CONSIDERATION OF H.R. 975, REDUCING VOLUME OF STEEL 
   IMPORTS AND ESTABLISHING STEEL IMPORT NOTIFICATION AND MONITORING 
                                PROGRAM

                                 ______
                                 

                               speech of

                        HON. HAROLD E. FORD, JR.

                              of tennessee

                    in the house of representatives

                       Wednesday, March 17, 1999

  Mr. FORD. Mr. Speaker, I rise today in support of the Bipartisan 
Steel Recovery Act of 1999. I believe this initiative provides a 
comprehensive approach to enforcing trade laws by stating clearly and 
forcefully that the United States does not and will not tolerate 
violations of trade laws by foreign corporations.
  As we enter a new millennium, we must face and embrace globalism by 
ensuring that all our citizens have the skills required to compete in 
the international economy. Export-driven job growth ensures that our 
communities' living standards continue to rise.

[[Page 5024]]

  The primary forces shaping our economy--globalization, 
digitalization, deregulation, and diversity--require that we consider a 
broader array of international trade and investment opportunities. The 
city of Memphis is considered America's Distribution Center, and trade 
liberalization will help us become the World's Distribution Center.
  But, while I support free trade, I also support fair trade. When 
other countries employ unfair trading practices, we must respond in 
kind. The rules of the international trading system, as laid out in the 
World Trade Organization, are predicated upon fair trade. If a country 
violates these rules, the system itself suffers.
  That is why we must respond forcefully when foreign firms are dumping 
their products in the United States at prices under the fair market 
value. That is why we must respond forcefully when huge import surges 
threaten American jobs. This bipartisan measure demonstrates to the 
rest of the world that there is a right way and a wrong way to pursue 
globalization.
  The plight of Birmingham Steel, which operates a mini-mill in the 
Ninth District of Tennessee, is an example of how the current crisis is 
affecting working families in our country. In Memphis, Birmingham Steel 
employees manufacture steel that is eventually fashioned into wire 
rods. Since 1993, wire rod imports from non-NAFTA nations have 
increased 60 percent, and in the past 18 months these imports have 
increased by 16 percent. Surely, we need to rectify this situation.
  We also need to be wary of the macroeconomic effects of the surge in 
imports. A recent Business Week article noted that the merchandise 
trade deficit widened by 25 percent in 1998, to a record $248 billion. 
Most of this can be attributed to surging imports, such as the steel 
surges from Brazil, Russia, and Japan. Economists agree that while the 
U.S. economy continues to prosper and grow, a ballooning current 
account deficit could prompt a correction in stock prices, a weaker 
dollar, and possibly even a recession. In other words, our 
unprecedented record of high growth--while keeping inflation and 
unemployment low--is jeopardized by import surges.
  About two decades ago, the U.S. steel industry was widely criticized 
for lagging competitiveness, excessively high prices, and low labor 
productivity. Both management and labor realized that they had to 
reinvent the way steel was produced in the United States. They did so 
through reinvestment, streamlining, and hard work. The steel industry 
has since turned itself into one of the most admired, productive 
sectors of U.S. business.
  Now, as world trading rules are being flaunted, it is time for us to 
come to the aid of this proud industry, an industry that is crucial to 
our national defense and our American heritage. Our steel workers 
deserve better. The world trading system deserves better. For these 
reasons, I am proud to be a cosponsor of the Bipartisan Steel Recovery 
Act of 1999.

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