Posted on 30 Jun 2015
The steel industry no longer has to worry about whether imports have squashed enough profits and siphoned away enough jobs for the federal government finally to do something about it.
President Barack Obama signed two major trade bills, updating U.S. trade laws for the first time in more than 20 years. The steel industry hailed it as a victory that will make it easier for steelmakers to defend themselves against illegal steel dumping that's depressed production and triggered layoffs and idlings nationwide.
"I commend President Obama for strengthening our trade enforcement laws by signing Trade Promotion Authority and Trade Adjustment Assistance," U.S. Steel President and CEO Mario Longhi said.
"This legislation will open new markets for American goods and services, but also clarifies the injury standard in dumping and counterveiling duties cases to better protect our workers and companies from the harm of unfairly traded products."
Steelmakers long have complained the injury standard – what the International Trade Commission considers when deciding whether to impose duties – has been weakened to the point where it was no longer effective against a record tide of imports. They said foreign steelmakers figured out how to game the system so they can flood the U.S. market with steel that's often below-cost and illegally subsidized.
The steel industry has been lobbying for tougher enforcement mechanisms after imports skyrocketed by 38 percent last year and now account for roughly a third of the market. Domestic steelmakers said they're losing business on price because of currency manipulation and foreign imports that were subsidized, which is illegal under international trade agreements.
The industry is still lobbying for a customs bill that would clamp down on foreign companies that try to evade antidumping and countervailing duties. The American Iron and Steel Institute is calling on Congress to take action quickly.
"I and the more than 34,000 employees who work for United States Steel thank President Obama and our Congressional champions for pursuing responsible fair trade policies," Longhi said.
"Fair trade is critical to a successful economy, and these laws are another step on our drive to ensure that America remains a global economic force."
Obama visited U.S. Steel plants in Western Pennsylvania last year and understands the American worker and what American manufacturing is still capable of, Longhi said.
"He knows that we can compete against any country if the rules apply to all," Longhi said.
"Today he took an important first step in the process of leveling the playing field against unfairly traded products and supported fair trade at home and abroad. We look forward to working with members of the administration to ensure that U.S. trade laws and practices are strong and that countries who break our laws are punished before irreparable harm is done."
Said American Iron and Steel Institute President and CEO Thomas Gibson, "Today's bill signing is the culmination of dedication and hard work by many members of the steel industry, partner industries and numerous steel champions in the House and Senate who worked tirelessly to ensure the trade remedy provisions were included in the trade package."
"We thank the Administration for recognizing the critical role of the steel industry by supporting these initiatives to improve the effectiveness of our antidumping and countervailing duty laws."
"We greatly appreciate having these improved tools at our disposal in our continuing efforts to combat unfair trade, given the trade laws have not been updated by Congress in over 20 years."
