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STANDING UP FOR STEEL, ROCKEFELLER URGES ITC TO APPLY INTERNATIONAL TRADE RULES TO COLD-ROLLED STEEL INQUIRY

WASHINGTON, D.C. – Testifying on behalf of the nation’s steel industry, Senator Jay Rockefeller (D-WV) strongly urged members of the International Trade Commission (ITC) today to rule that illegal imports of cold- rolled steel had caused injury to the U.S. steel industry. The ITC is doing a final review of whether certain imports of cold-rolled steel are violating U.S. trade laws and causing material injury to the nation’s cold-rolled steel industry. Both Weirton Steel and Wheeling Pittsburgh Steel in West Virginia produce cold-rolled steel. If the ITC finds injury, antidumping tariffs could be imposed on foreign cold-rolled steel.

"Foreign imports surged by 50 percent last year, in a shrinking U.S. market. And U.S. steel makers reduced capacity, cut employment, and posted losses of $2 billion last year on their cold-rolled steel operations alone. In these circumstances, it seems obvious to me that illegal imports are seriously injuring the U.S. cold-rolled steel industry, and will do even more harm if allowed to continue," said Rockefeller during his testimony. He continued, "I urge the Commission to enforce our trade laws and level the playing field for American steelmakers through antidumping tariffs."

Last year eight American steelmakers filed suit under U.S. trade law arguing that foreign cold-rolled steel is being sold below fair market prices in the U.S., which is in violation of U.S. trade laws. A final determination by the ITC that these imports are causing or threaten to cause material injury to the U.S. steel industry is required before anti-dumping tariffs can be imposed.

Rockefeller explained that this cold-rolled dumping case and the earlier Section 201 tariffs on steel are entirely unrelated, and he urged the Commission not to view the temporary Section 201 safeguards as a substitute for enforcing U.S. anti-dumping law in the cold-rolled steel investigation. The Section 201 tariffs are limited in duration, in the products they cover, and in the countries they apply to. Some of the developing countries named in the cold-rolled steel investigation are not even covered by the Section 201 measures. Therefore, Rockefeller argued, "the 201 measures do not provide adequate protection against foreign dumping and subsidization of cold-rolled steel."

"Some might say that the Section 201 measures gave enough relief to the steel industry," said Rockefeller, co-chair of the Senate Steel Caucus. "But illegal dumping, as we’ve seen with cold-rolled, demands its own remedy under our trade laws. The cold-rolled steel case should be decided by the ITC on its own merits, and should not be affected by unrelated trade policy decisions like the Section 201 measures."

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