 |
||
   |
 |
For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp. today urged the Bush administration to reconsider a proposal to repeal the "Byrd Amendment" which enables U.S. companies to receive funds paid by countries that violated federal trade laws. The president's budget, unveiled Tuesday, calls for the elimination of the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA), known as the Byrd Amendment, after its sponsor, U.S. Sen. Robert C. Byrd, D-W.Va. The law enabled nearly $330 million in funds to be distributed to various types of U.S. companies including Weirton Steel which recently received $467,000. The U.S. Treasury Department's budget states, "These corporate subsidies effectively provide a significant 'double dip' benefit to industries that already gain protection from the increased import prices provided by countervailing duties." In response, Weirton Steel President and Chief Executive Officer John H. Walker said, "President Bush gave the domestic steel industry a tremendous boost by imposing tariffs last March on certain steel products. The tariff program has slowed the surge of imports, especially those sold at illegal prices. However, I respectfully disagree that companies double dip in the process." He added, "The tariffs curbed imports, but U.S. steelmakers suffered enormous financial losses because of the unfair trade. The government was not harmed, we were. Therefore, receiving what amounts to restitution from the guilty parties is fair. Keep in mind that while we're pleased to have received the payment, it's a drop in the bucket compared to our losses caused by cutthroat trade practices." Until passage of the CDSOA, tariffs collected by the U.S. Customs Service were placed in the federal treasury. The World Trade Organization (WTO) Appellate Body recently ruled the CDSOA violates WTO rules. As of early today, 65 senators had signed a letter that will be sent to Bush urging him to resist the WTO action and maintain the law. The Senate letter, spearheaded by Byrd and U.S. Sen. Mike DeWine, R-Ohio, was signed by 21 Republicans, 43 Democrats and 1 Independent. In addition to Byrd and DeWine, other senators who represent Weirton Steel and its work force include: Jay Rockefeller, D-W.Va.; George Voinovich, R-Ohio; and Arlen Specter and Rick Santorum, both R-Pa. "Obviously, the majority of the Senate believes this law is fair and beneficial to American companies that fought so hard against unfair trade. It is my hope the administration strongly reconsiders its CDSOA position given the tremendous bi-partisan support for the law," Walker commented. Companies are eligible for the funding if they participated as complainants in trade cases that proved other nations violated federal trade laws. In recent years, Weirton Steel participated in several cases in which it accused other nations of selling steel that violated federal pricing and subsidy laws. "This is a great program. The Senate's widespread support serves as an important message that the tariffs should go to the affected industries. I think the Senate will not let this law be repealed," said Roger B. Schagrin, trade attorney for Weirton Steel. Weirton Steel is the seventh
largest U.S. integrated steel producer.
|
