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Weirton, WV— President Bush’s solution for solving the import crisis is not exactly what the steel industry had hoped for, but it may pave the way for more positive action in the future. ``President Bush’s decision falls short of the comprehensive solution we were seeking. However, we are hopeful that this is the beginning of a process that will ultimately help us attain more meaningful relief,’’ said ISU President Mark Glyptis. ``Although the president did not agree to impose the 40 percent tariff that our industry had requested, he has done more to address our concerns than President Clinton ever did. We’ve established a rapport with the Bush administration that I believe will benefit our industry in the long-term.’’ The president’s decision puts to rest a wide range of reports that have been circulating for many weeks about what type of remedy would be implemented to address the import crisis. The White House solution calls for a three-year tariff structure to be applied to flat-rolled steel imports, which include the hot-rolled, cold-rolled, galvanized and tinplate products made at Weirton Steel Corp. Glyptis explained that the tariffs on flat-rolled products would be 30 percent for the first year, 24 percent during the second year and 18 percent in the final year of the plan. The remedy also includes a tariff-rate quota calling for a 30 percent tariff on slabs once imports reach 5.4 million tons. Steel leaders and industry proponents had urged the International Trade Commission to recommend the president impose tariffs of 50 percent for a four-year period, the maximum allowed under Section 201 of the 1974 Fair Trade Act. However, when the ITC issued a disjointed recommendation of tariffs ranging from 20 to 40 percent, the industry began lobbying for at least 40 percent. A remedy of 40 percent would have boosted U.S. steel prices, which are at a 20-year low, by about 10 percent. Glyptis was pleased the president included tinplate products in his ruling in light of the ITC’s inability to reach a consensus on whether the American industry was harmed by imports of tin mill products. The ITC was divided with three of the commissioners believing imports have negatively impacted U.S. tin producers and the other three saying the industry has not been adversely affected. The 3 to 3 tie vote meant that no ITC recommendation was made to the president regarding a solution for tinplate products and he could have opted to impose no tariff. ``Tin mill products account for about 40 percent of Weirton Steel’s annual revenue. The tariff of 30 percent is meaningful relief for this particular product line and it’s enough to keep us in the tinplate business,’’ said Glyptis. ``Anything less would not have provided us with the relief necessary to remain a top player in the tinplate market.’’ Administration leaders worked into the evening on Monday in an attempt to create a compromise plan which addresses the concerns of the beleaguered steel industry while staying true to Bush’s philosophy of free trade. In order to accomplish this goal, Bush has exempted imports from Canada, Mexico, Argentina, Thailand and Turkey. The tariffs would apply to countries, such as China, Japan, Russia, South Korea, Ukraine and Brazil, which have been primary violators of U.S. trade laws. ``The administration has complicated the issue by exempting certain countries and we know from our past experience that we will see product shifting,’’ said Glyptis. ``Countries that are forced to pay a tariff will start sending their products to the areas where there are no tariffs and then ship them to the United States. When you exclude countries from the penalty, you negate the effectiveness of the proposed solution and you don’t save jobs.’’ Glyptis said the exemptions will prompt Weirton Steel Corp. and other U.S. companies to continue fighting for the survival of their industry by filing trade cases against countries that violate American trade laws by engaging in product shifting. Although a 40 percent remedy was not achieved, President Bush is still credited with being more responsive than former President Bill Clinton to the needs of the ailing industry -- which has witnessed 31 bankruptcies since 1998. Clinton refused to live up to his promises to help the industry even after being asked on countless occasions to initiate a Section 201 investigation.
Bush rejected the industry’s pleas to have the government assume the health care and pension liabilities of bankrupt steelmakers. Congress has the option, however, of taking action to help these workers keep their retirement benefits.
``Although it was mentioned during the 201 investigation, I never thought President Bush would include the issue of legacy costs in his remedy,’’ said Glyptis. ``We have maintained for many months that this type of relief must come through legislative action.’’ | ||||||||||
