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For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp.’s top executive has asked President Bush to stand firm on three issues that threaten to further weaken the U.S. steel industry. Weirton Steel President and Chief Executive Officer John H. Walker today sent a letter to Bush regarding three issues which include: a House resolution to rescind the 201 tariff program; a World Trade Organization (WTO) ruling concerning the tariffs; and requests for the tariffs to be lifted on certain steel imports. Copies of the letter were sent to the U.S. Commerce Department and the U.S. Trade Representative’s office. The latest effort to dismantle the tariff program is a House resolution expected to be introduced today by U.S. Rep. Joseph Knollenberg, R-Mich. He and other House members are requesting the president utilize a section of the Fair Trade Act which calls on the U.S. International Trade Commission to investigate the impact of the tariffs on domestic steelmakers and domestic companies that purchase steel. Knollenberg and his supporters contend the tariffs, which raised the price of steel, is harming companies that purchase steel to manufacture their products, primarily those in or related to the auto industry. "I’ve asked President Bush to preserve the original three-year tariff program. The tariff rates and duration were designed to give our industry the time needed to restructure itself to be more competitive. Restructuring is occurring and we need the full three years to do so," Walker said. "During the recent steel import crisis, many U.S. companies benefited from buying low-cost illegally dumped steel. Since the tariffs have caused prices to climb toward their normal levels, these companies contend they are being harmed. However, keep in mind they paid normal prices before the crisis and there was no problem. Congressman Knollenberg’s is among the latest attempts to weaken or stop the tariff process. We are vehemently opposed to this position," Walker commented. Walker explained that steel jobs or steel communities should not be at risk because of illegal imports. He added, "Our industry lost 54,000 jobs during the import crisis and industry sources report that Congressman Knollenberg’s state alone stands to lose 29,000 jobs if the tariffs are eliminated." Concerning the WTO, the organization’s appellate body recently determined that the U.S. violated its WTO obligations when it enacted a program for domestic companies injured by illegal imports to receive a portion of the tariffs. Domestic companies recently began receiving tariff funds through the Continued Dumping and Subsidy Offset Act (CDSOA) which was introduced by U.S. Sen. Robert C. Byrd, D-W.Va. Weirton Steel recently received nearly $500,000 under the program. Walker has adopted a position by Senate members who also intend to send a letter to Bush urging the president to inform the WTO of the U.S.’s right as a WTO member to distribute the funds and to work closely with Congress if any negotiations with the WTO develop over the issue. In regard to the tariff exclusions, Walker requested the administration not to lift tariffs on steel imports that compete with those produced in the U.S. "The tariffs help all U.S. steel companies. Excluding tariffs on the type of steel we and other domestic steelmakers produce would devastate us," Walker noted. Last year, Weirton Steel objected to 121 of the nearly 1,500 exclusion requests submitted to the government. All but one objection were granted and that included a product that is produced by the company in limited amounts. During the current exclusion process, Weirton Steel has submitted 20 objections to the 636 requests, but expects to file additional objections in the near future. "In addition to these issues, we face others – from the local to international level – that make it difficult to compete. A step backward on any of these matters is harmful. We will continue communicating our position and work to overcome them," Walker said. Weirton Steel is the
seventh largest U.S. integrated steel company.
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