For Immediate Release

Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax

BETHLEHEM, Pa., February 12, 1999 -- Curtis H. Barnette, Chairman and CEO of Bethlehem Steel Corporation, today welcomed preliminary findings by the Commerce Department that set substantial antidumping margins on hot-rolled steel products from Japan from 25 to 67 percent, and from Brazil from 50 to 70 percent and countervailing duty margins on products from Brazil from 6 to 9 percent.

We do regret that preliminary antidumping margins were not released as to Russia, and we are particularly concerned about discussions to enter a possible settlement or suspension agreement with Russia. We oppose any such agreement since it will deny us of our rights and give permission to Russia to continue to dump in America.

These findings confirm that these countries have been dumping steel in America in massive quantities causing serious injury. Between 1995 and November 1998, hot rolled imports from the three countries surged 630 percent, increasing their U.S. market share tenfold, from 4.3 percent to 42 percent.

The Department's very important earlier decision expedited review of these cases and its critical circumstances finding extends potential liability for antidumping duties to all imports entering the U.S. after November 14, 1998. The Department accelerated these cases, and the fact that imports from Russia and Japan plunged precipitously from November to December 1998 following the critical circumstances ruling shows that foreign producers were well aware that they were operating with total disregard for our trade laws.

The findings came in response to petitions filed in September 1998 by American steel companies and unions because of the growing volume of dumped and subsidized steel imports that has reduced shipments and production, depressed prices, resulted in the loss of more than 10,000 jobs in the steel industry, adversely affected domestic producer profits, and forced three companies into bankruptcy. The American steel industry, which over the past two decades has modernized and become the low-cost producer for the U.S. market, resorted to actions under the trade laws to try and stop the tide of unfairly traded imports.

While the U.S. industry has made the difficult restructuring decisions and invested the capital to modernize and become competitive, other countries have simply continued their specific actions of protecting their domestic markets and dumping products here. We are the "World's Steel Dumping Ground."

We hope that the Commerce Department's preliminary findings will be upheld in the Department's final decision on margins and that the International Trade Commission will find that the U.S. industry has been injured by these unfair trade practices. Such a finding would cause the imposition of the antidumping duties on hot-rolled steel products from Japan, Russia and Brazil as well as countervailing duties on Brazil.