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SUBCOMMITTEES: Privacy, Copyright, and Permission to Link Statement |
Committee on Ways and Means For Immediate Release Statement by Chairman Thomas Markup of H.J. Res. 84 - Steel Disapproval Resolution Today, the Committee will consider H.J. Res. 84, a resolution disapproving the President’s safeguard action regarding steel imports. On March 5th, President Bush announced trade remedies on several steel products for which the International Trade Commission (ITC) had found substantial injury. The effect of voting for the disapproval resolution is to enact the ITC’s remedy rather than the President’s recommendations. Today the Committee is not determining whether we agree or disagree with the President’s action, but rather if we prefer the ITC’s remedy. I do not believe that the ITC’s remedy recommendations are more favorable, and, in some instances, the ITC’s remedy is actually worse. The truth is that I would have preferred that we had a world market in steel. The reality is that there is not one. The President has created a window of opportunity to change the United States production of steel and address the global over-supply issue. The President’s step is an interim one that creates an environment for change. The President wisely excluded all free trade agreement partners and most developing countries. This sends an important message that America supports its FTA partners and is committed to the developing world. The President’s remedy is also better tailored to provide relief to the steel industry while minimizing the negative impact on the rest of the economy. For example, the Administration’s remedy provides exclusions for West Coast steel producers which require imported steel feedstock for their production. These companies have already adjusted their business models to the highly competitive nature of the global steel industry. We should not punish these West Coast mills simply because their operations don’t fit the East Coast steel industry’s model. Producers should be treated equally. And one company should not get better treatment simply because it imports slab instead of full-hard cold rolled steel. Some have criticized the President’s action, but at least he made his determination after a thorough investigation, which followed WTO rules on safeguard measures. This is not what Europe did when it implemented its own provisional safeguard protections on steel in March without conducting any investigation whatsoever. Moreover, I am deeply troubled by the EU’s contention that it can retaliate against the United States prior to an adverse ruling by the WTO. I question the EU's legal theory, and I hope that reason will prevail and the EU will not take such unilateral action. The President has provided a temporary reprieve for the steel industry, while taking into consideration the impact on the U.S. economy. The ITC recommendations are too inflexible and should be rejected. |