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Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 106 CONGRESS, FIRST SESSION

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Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 106 CONGRESS, FIRST SESSION E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, FIRST SESSION Vol. 145 WASHINGTON, TUESDAY, JANUARY 19, 1999 No. 8 Senate STATEMENTS ON INTRODUCED of foreign dumping and subsidization. ther erect barriers to keep U.S. steel BILLS AND JOINT RESOLUTIONS These foreign practices have reduced out, or subsidize their exports to dis- (Continued) the ability of our injured domestic in- tort prices. That's why we have trade dustries to reinvest in plant, equip- laws designed to promote fair trade. By Mr. DEWINE (for himself, Mr. ment, people, R&D, technology or to However, it's clear that our current HOLLINGS, Mr. ABRAHAM, Mr. maintain or restore health care and trade policies aren't working. Current SANTORUM, Mr. SPECTER, Mr. pension benefits. The end result is this: law did not deter foreign steel produc- BYRD, Mr. HUTCHINSON, and Mr. continued dumping or subsidization ers from dumping their products in our VOINOVICH): jeopardizes renewed investment and country. These foreign producers have S. 61. A bill to amend the Tariff Act prevents additional reinvestment from done the math. They have made a cal- of 1930 to eliminate disincentives to being made. culated decision that the risk of duties fair trade conditions; to the Committee The current steel dumping crisis is is a price they are willing to pay in re- on Finance. the latest sobering example of why our turn for the higher global market share THE CONTINUED DUMPING OR SUBSIDIZATION legislation, among others, is needed to they have gained by chipping away at OFFSET ACT better enforce fair trade. Because of the size and strength of our nation's Mr. DEWINE. Mr. President, today I massive dumping, steel imports are at steel industry. join with Senators ABRAHAM, an all-time high. According to the It's time we impose a heavier price SANTORUM, SPECTER, HOLLINGS, BYRD, American Iron and Steel Institute, 4.1 on dumping and subsidization. The HUTCHINSON and others to introduce the Continued Dumping or Subsidy Off- net tons of steel were imported in the Continued Dumping or Subsidization set Act. This legislation is designed to month of OctoberÐthat's the second Offset Act would accomplish this goal. ensure that our domestic producers can highest monthly total ever, and is 56% It would transfer the duties and fines compete freely and fairly in global higher than the previous year. imposed on foreign producers directly markets. This bill is a top priority for This surge in imports is having a di- to their U.S. competitors. Under our me and my fellow cosponsorsÐnot only rect impact on our own steel industry. bill, foreign steel producers would get a because we believe it is good policy, In November, U.S. steel mills shipped double hit from dumping: they would but also because it is needed to respond nearly 7.4 million net tons of steel in have to pay a duty, and in turn, see to the current import dumping crisis in November of last yearÐmore than one that duty go directly to aid U.S. steel our steel industry. million tons below what was shipped producers. As my colleagues know, the Tariff one year earlier. We have seen U.S. In order to counter the adverse ef- Act of 1930 gives the President the au- steel's industrial utilization rate fall fects of foreign dumping and subsidiza- thority to impose duties and fines on from 93.1% in March of 1998 to 73.9% in tion on U.S. industries, Congress imports that are being dumped in U.S. January of 1999. And most troubling of should pass this bipartisan bill. markets, or subsidized by foreign gov- all, approximately 10,000 jobs have been The steel crisis also has amplified the ernments. Our bill would take the 1930 lost in our steel industry since last need for additional improvements in Act one step further. Currently, reve- year. More layoffs are certain. Whether our trade laws, as well as tougher en- nues raised through import duties and these jobs will ever be restored is un- forcement of existing laws. Last Octo- fines go to the U.S. Treasury. Under certain. This is a genuine crisis for the ber, many of us in Congress came to- our bill, duties and fines would be communities in the Ohio River Valley gether to offer an early New Year's res- transferred to injured U.S. companies and in other communities across the olution for 1999: to stand up for steel. as compensation for damages caused by country. Any crisis requires leadership. That's dumping or subsidization. This is not a case of being on the why Congress asked the President to We believe this extra step is nec- wrong side of a highly competitive make a New Year's Resolution of his essary. Current law simply has not market. Today's U.S. steel industry is ownÐone that would honor a pledge he been strong enough to deter unfair a lean, efficient industryÐa world lead- made in 1992 to strongly enforce U.S. trading practices. In some cases, for- er thanks to restructuring and millions antidumping laws. Specifically, Con- eign producers are willing to risk the of dollars in modernization. U.S. steel- gress asked the President for an action threat of paying U.S. antidumping and workers are the best and most produc- plan no later than January 5thÐa plan countervailing duties out of the profits tive in the world. In fact, America's that would end the distortion and dis- of dumping. workers devote the fewest manpower ruption in global steel markets, as well Current law also does not contain a hours per ton of steel. as the disappearance of jobs and oppor- mechanism to help injured U.S. indus- Simply being the best is not enough tunity in U.S. steel plants. It was a call tries recover from the harmful effects against foreign governments that ei- for presidential leadership. · This ``bullet'' symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. S497 . S498 CONGRESSIONAL RECORD Ð SENATE January 19, 1999 On January 8th, the President re- Ultimately, we cannot achieve free an antidumping duty order, a finding under leased a plan that fell far short of what and fair markets on a global scale un- the Antidumping Act of 1921, or a counter- we hoped. It was a plan that showed a less our laws work to encourage all vailing duty order has been entered, and reluctance to fully utilize our laws to competitors to play by the rules. And ``(B) remains in operation. ensure free and fair trade. It did not ultimately, congressional action alone Companies, businesses, or persons that have recommend any trade legislation to is no substitute for presidential leader- ceased the production of the product covered by the order or finding or who have been ac- better protect U.S. industry from ship. That's why Congress and the quired by a company or business that is re- dumping. As a result, it sends a dan- American steel community need to lated to a company that opposed the inves- gerous signal to foreign governments keep the pressure on. In fact, thou- tigation shall not be an affected domestic that dumping will not meet with a sands of steel workers from the Ohio producer. swift response from the United States. Valley are arriving in our nation's cap- ``(2) COMMISSIONER.ÐThe term `Commis- I am concerned the President has not itol in a massive call for presidential sioner' means the Commissioner of Customs. fully grasped the magnitude of this leadership. It's time our President took ``(3) COMMISSION.ÐThe term `Commission' problem. In the past few months, I a stand for fair trade. It's time for our means the United States International Trade Commission. have visited with Ohio Valley steel pro- President to stand up for steel. ``(4) QUALIFYING EXPENDITURE.ÐThe term ducers and workers, including a num- Mr. President, I ask unanimous con- `qualifying expenditure' means an expendi- ber of the hundreds laid off because of sent that the text of the bill be printed ture incurred after the issuance of the anti- foreign dumping. Their message was in the RECORD. dumping duty finding or order or counter- the same: the surge in steel imports There being no objection, the bill was vailing duty order in any of the following represents a crisis of historic propor- ordered to be printed in the RECORD, as categories: tions. follows: ``(A) Plant. ``(B) Equipment. S. 61 The root of the current import crisis is the ``(C) Research and development. financial distress that plagues Asia and Rus- Be it enacted by the Senate and House of Rep- ``(D) Personnel training. sia, which has created a worldwide over- resentatives of the United States of America in ``(E) Acquisition of technology. supply of steel. While foreign consumption of Congress assembled, ``(F) Health care benefits to employees steel has nearly dried up, America's strong SECTION 1. SHORT TITLE. paid for by the employer. economy and open markets have made the This Act may be cited as the ``Continued ``(G) Pension benefits to employees paid United States a prime target for exporters. Dumping and Subsidy Offset Act of 1999''. for by the employer. We are dedicated to assisting these econo- SEC. 2. FINDINGS OF CONGRESS. ``(H) Environmental equipment, training, miesÐso we can avoid a global downturn. Congress makes the following findings: or technology. But turning a blind eye toward our steel (1) Consistent with the rights of the United ``(I) Acquisition of raw materials and other workers is the wrong way to do it.
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