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Weirton Steel CEO, Trade Attorney Attack CITAC’s Attempt To End "Byrd Amendment" For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp.’s chief executive officer and the company’s trade attorney said the logic behind a recently formed coalition aimed at ending the "Byrd Amendment" is weak and should not be seriously considered by Congress or the Bush administration. The Consuming Industries Trade Action Coalition (CITAC) recently announced it has formed a coalition of various industries to attempt to end the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA). CDSOA commonly is referred to as the Byrd Amendment since it was introduced by U.S. Sen. Robert C. Byrd, D-W.Va. U.S. Rep. Alan B. Mollohan, D-W.Va., Weirton Steel’s congressman, sponsored the amendment in the House. The new coalition, the CDSOA Reform Coalition, is headed by Bob Bauer who also serves as president of the Association of Food Industries. The Byrd Amendment maintains that certain companies, steel and otherwise, that were adversely affected by illegal foreign trade practices can receive tariff funds collected by the U.S. government. The funds are generated by tariffs placed on imports that have been proven to have violated trade laws. Last year, Weirton Steel received more than $650,000 that otherwise would have been placed in the federal treasury. The company is scheduled to receive additional tariff funds this year. CITAC claims the payments distort trade, create a subsidy, violate the U.S.’s international obligations and harm American consumers. "Companies, such as Weirton Steel, participated in the filing and prosecution of dumping and subsidy cases against foreign steel producers. After proving certain steel imports violated the law, the government levied tariffs against their products. It makes sense that the tariffs collected be divided among the steel companies pursuing these cases. After all, we’re the ones who have been harmed and continue to suffer from these illegal trade acts," said John H. Walker, Weirton Steel president and chief executive officer. CITAC Executive Director Janet Kopenhaver was quoted Wednesday saying there are U.S. companies who file antidumping and countervailing duty cases because they can receive money down the road at the expense of their customers. Trade attorney Roger B. Schagrin, of Washington, D.C., and who represents Weirton Steel, called Kopenhaver’s comments "ridiculous." He added, "In the past 20 years, I’ve filed more trade cases than any other attorney. Both before and since the Byrd Amendment was introduced, I’ve never come across an industry or company that filed a trade case because it could make money from the tariffs collected. Petitioners file cases because unfair imports have cost them sales, lowered profits, forced layoffs or slowed and closed operations." Walker agreed stating, "While the payments we and others receive from the tariffs can be viewed as restitution, they are minuscule in comparison to the money we lose at the hands of unfair imports." Bauer also was quoted Wednesday saying that companies that file or support trade remedy cases that are not valid should not be rewarded with government assistance at the expense of consumers. "Mr. Bauer’s comments make no sense. No one receives payments if a case is not valid, meaning the case was not proven. Tariffs are imposed only in valid cases and companies that participated in those cases are eligible to receive payments," Schagrin said. "CITAC amazes me. Perhaps it should name its next coalition ‘The Coalition of the Beneficiaries of Dumping’ since CITAC wants its members to benefit from such trade practices despite what the law says. Or, maybe they should consider ‘The Coalition for Trade Deficits’ because the U.S. is facing a $500 billion merchandising trade deficit. Or, perhaps ‘The Coalition for Increasing U.S. Unemployed,’ since we’ve lost two million manufacturing jobs in the past two years," Schagrin commented. "Anyway you cut it, illegal trade practices harm American companies and their workers. Keep in mind, CITAC is run by a large legal firm that often represents foreign companies in trade cases." Earlier this year, the World Trade Organization (WTO) Appellate Body ruled the Byrd Amendment placed the U.S. in the position of not abiding by its WTO obligations. The WTO said the payments are an additional unauthorized penalty against dumped and subsidized imports. Walker said Weirton Steel will continue urging Congress to maintain the law and for the Bush administration to support the measure. He said the law will be among other issues discussed when he meets today with U.S. Congresswoman Shelley Moore Capito, R-W.Va., who is visiting the steelmaker. Weirton Steel is the sixth largest U.S. integrated steel company.
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