Since June 1998, the domestic steel industry has been hit with a major crisis. As a
result of the collapse of the Asian and Russian financial markets, foreign steel
competitors have been importing steel to our shores in record amounts at prices well below the cost of
production. This practice, called "dumping", is illegal and is in violation of
U.S. trade law and long standing trade agreements. In some cases, foreign governments have
provided subsidies to their steel producers which allow them to sell steel at an unfair
price, also in violation of U.S. law.
Simply put, when our foreign competitors sell steel below what it cost them to produce
it, we cannot compete
Thirty-five
steel or steel-related companies have declared bankruptcy or
liquidated their assets as a direct result of these unfair trade
practices. The effect on
steelworkers and local economies across the nation has been devastating.
Weirton Steel felt the crunch of the four-year
crisis, at times conducting temporary shutdowns of various production
units and permanent work force reductions, yet able to avoid
bankruptcy.
While suffering through the constant pinch of historically
low prices and softened demand, the company and its domestic competitors
constantly waved the red flag, hoping for President Bill Clinton to
request an investigation by the U.S. International Trade Commission
(ITC) into unfairly traded foreign steel. It never happened.
That all changed on January 20, 2001, with the
inauguration of President George W. Bush. The nation's chief executive
heard steel's cry, listened to its supporters -- Republican and
Democrat alike -- and acted.
In June 2001, Bush asked the six-member ITC to launch an investigation
permitted under Section 201 of the Fair Trade Act of 1974. The ITC in
November ruled certain steel imports did or could seriously
harm the U.S. steel industry. One month later, the commission offered
remedy recommendations on various steel products to the White House.
Flat-rolled steel producers asked for tariffs of at least 40
percent, but the ITC recommended 20 percent in descending order for
hot-rolled, cold-rolled and galvanized products. For tin mill products
(TMP), it gave no recommendation.
With its future hanging in the balance, the American steel industry
looked to the president to impose fair remedies to deliver a staggering blow
to steel imports and provide domestic steel relief from the impact of dumping and subsidies.
That action came after four years of rallies, lobbying,
meetings, hearings and letter-writing campaigns. U.S. steelmakers received the breathing room they needed when Bush
on March 5, 2002, imposed descending tariffs beginning at 30 percent on
hot rolled, cold rolled, galvanized and TMP for three years, effective March
20.
The president's decision on TMP imports was especially gratifying for
Weirton Steel since the product accounted for 49 percent of its
revenues in 2001.
The American steel industry has fought long and hard to remain a
viable industry over the last several decades. U.S. producers have spent
billions of dollars to upgrade facilities and
streamline production to manufacture some of the best and highest-grade steel ever produced.
You still can support "Stand Up For
Steel" in your community. The tariff program is only the first
of many avenues the domestic steel industry must follow to maintain a
fair playing field for its products. Therefore, we urge you to continue
making your voice heard to preserve the U.S. steel
industry.
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