Posted on 10 Apr 2015
Dumping of steel products by foreign governments again threatens the economy of Northwest Indiana and the nation, U.S. Rep. Pete Visclosky, D-Ind., told dozens of business and nonprofit agency representatives at Thursday’s Morning Business Hour at First Financial Bank.
“Steel remains the backbone of our economy in Northwest Indiana,” Visclosky said. “(Yet) 58 percent of the tubular products (made from steel) are being sold here by foreign countries.”
This hearkens back to the late 1970s, early '80s as well as the '90s when steel dumping sent the region’s economy into a tailspin resulting in the loss of jobs and mill closures, he said.
The dumping affects manufacturing jobs across Lake, Porter and LaPorte counties, Visclosky said. “In LaPorte, Porter and Lake 1,920 have had to file for unemployment.”
Visclosky, who is a member of the House of Representatives' steel caucus, called this “a game these countries are playing against people and business here.”
Foreign countries that subsidize steelmaking are importing steel because they have no natural resources of their own to produce it, Visclosky said. These governments control the production and wages of workers making the tubular products, then sell the products in the U.S. with little or no consequences.
He cited a case the U.S. won against China in 2009 for dumping steel tubular products.
“Immediately, seven other countries filled that void. It takes 18 months to adjudicate each case, and the countries are willing to pay fines because they are making money,” Visclosky said.
“There has been bipartisan failure administration after administration to address this (trade issue),” he said. “We have to use this year’s and next year’s debate on trade, and we need to shorten the time for enforcement.”
Visclosky promised those in attendance that he and other members of the congressional steel caucus would work to change the standards of the nation’s trade laws.
“There will be active debate to shorten the time of enforcement,” he said
Asked if tariffs imposed on foreign products would be a solution, Visclosky said, “There is no stomach to do tariffs (in the U.S. Congress).”
“We’re looking not to dig the hole deeper,” he said. “Everybody doesn’t need to lose their jobs first. We need to change the language.”
