Bethlehem Steel Corporation
For Immediate Release
WASHINGTON,Oct 22 -In an historic move, the International Trade Commission (ITC) today found that American steel producers have been seriously injured by the flood of low-priced foreign imports that have entered the country in recent years. The vote by the independent panel paves the way for a second phase of review during which the ITC will determine what it believes is an appropriate remedy for the injury suffered. That recommendation will go to the President for review, though it does not bind him to a particular course of action.
Following the vote, representatives of America's steel industry lauded the ITC's decision, but cautioned that it is just the first step of a much larger journey toward a comprehensive solution to the crisis gripping the industry.
"The Commissioners deserve a good deal of credit," said United Steelworkers of America (USWA) President Leo W. Gerard, "for providing the first ray of hope in years to the 27,000 steelworkers who have been forced out of their jobs and the 600,000 retirees whose benefits have been put at risk by the predatory practices of our trading partners. Now the ITC needs to move quickly to recommend an effective set of remedies that the President can put into action before any further damage is done."
"The Commission's vote confirms what the industry has known for many years," said Thomas J. Usher, Chairman and CEO of USX Corporation. "Low-priced foreign imports have caused serious harm to steel producers throughout the United States. Today's action is an encouraging sign that the U.S. is moving forward to address the issue of foreign overcapacity."
President Bush has declared that a strong domestic steel industry is a vital component of both a strong national economy and security. In June, he laid out a comprehensive three-part strategy to address the cumulative effect of 50 years of foreign subsidization and unfair trade practices. The ITC investigation under Section 201 of U.S. trade laws was an element of his Steel Plan. The other two pieces are multilateral agreements to address foreign overcapacity and continued aggressive pursuit of foreign anti-competitive practices, such as subsidization and closed markets.
Relief under Section 201 can provide the industry some much-needed breathing room while longer-term solutions are put into place.
"Today's action recognizes that the U.S. industry has suffered for years because of unfair imports - the consequences are all around us," said Peter D. Southwick, President and COO of Ispat Inland Inc. "Since the beginning of this year alone, nearly 26,000 steelworkers have lost their jobs, the number of companies filing for bankruptcy has reached 25, and steel prices have continued to fall."
"As the chief executive officer of the most recent steel company to fall victim to unfair imports, I am grateful that the ITC has recognized the damage our domestic steel industry has suffered, and we look forward to a comprehensive solution by the President at an early date," said Robert S. Miller, Jr., Chairman and CEO of Bethlehem Steel Corporation. Bethlehem filed for bankruptcy protection Oct. 15.
The steel industry in the U.S. is among the most modern and efficient in the world. Since 1980, more than $60 billion has been invested in steel plant modernization. Productivity has increased by more than 150 percent, while the work force has been reduced by more than 300,000.
"We are gratified that the President took the action to initiate the 201 case," said William H. Bricker, Chairman, President and CEO of LTV Corporation. "We hope the action the ITC took today will eventually lead to much needed relief for the industry."
The ITC vote provides strong independent validation of the position of the Bush Administration. As such it provides a strong platform from which the U.S. government can conduct successful multilateral negotiations aimed at curbing the global excess steel capacity and eliminating the underlying market-distorting subsidies and protected home markets that have led to the current situation.
"Given a level playing field, American companies and American workers can compete with anyone in the world," said USWA's Gerard.
Additional Media Contact Information:
United Steelworkers of America
Gary Hubbard
202-256-8125
cell- 202-778-4384
Bethlehem Steel Corporation
Bette Kovach
610-694-6308
USX Corporation
Scott Salmon
202-783-6797
LTV Steel Corporation
Mark Tomasch
216-622-4635
Ispat Inland Inc.
David Allen
219-399-5430
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