PRINTER'S NO. 3200
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
811
Session of
2015
INTRODUCED BY EVANKOVICH, BURNS, LONGIETTI, MARSHALL, BAKER,
PASHINSKI, CUTLER, HENNESSEY, JAMES, MURT, MUSTIO, IRVIN,
DRISCOLL, McNEILL, SIMMONS, A. HARRIS, MILLARD, SAINATO,
D. COSTA, WARD, READSHAW, MAHONEY, PAYNE, FARINA, SANKEY,
GIBBONS, HARHAI, LAWRENCE, GOODMAN AND SAYLOR, APRIL 14, 2016
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 14, 2016
A RESOLUTION
Urging the President, Senate and House of Representatives of the
United States to fight for strong enforcement of our nation's
trade laws in order to level the playing field with China and
other countries and take necessary action to protect the
domestic steel industry from unfair foreign competition and
urging the Department of Commerce to maintain China's
nonmarket economy status in order to preserve the ability of
United States companies and workers to access domestic trade
remedy laws.
WHEREAS, Manufacturing is a critical part of Pennsylvania's
economy and provides 569,600 jobs; and
WHEREAS, Manufacturing industrial sectors are at risk of
sliding back into recession due to an alarming surge of unfairly
priced imports from China and other nations; and
WHEREAS, The United States trade deficit with China set a new
record in 2015 at $366 billion; and
WHEREAS, Manufacturing gained only 30,000 jobs nationwide in
2015, compared to 2.7 million across the entire economy; and
WHEREAS, The Institute for Supply Management Manufacturing
Index shows that the sector contracted in February 2016 for the
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fifth consecutive month; and
WHEREAS, The steel industry in particular is suffering from
an unprecedented surge in imports into the United States from
nations such as Brazil, China, India, Russia, South Korea,
Turkey and Vietnam; and
WHEREAS, Steel is used in a broad range of applications,
ranging from automobiles to energy production and transmission,
to transportation infrastructure including bridges, highways,
airports and railroads, to public safety infrastructure such as
water treatment, to construction of hospitals, schools,
industrial plants and commercial buildings and to national
security, including aircraft carriers, nuclear submarines, tanks
and armored transports; and
WHEREAS, The steel sector is an engine for well-paying jobs
for more than one million Americans and supports approximately
136,000 jobs in Pennsylvania according to the American Iron and
Steel Institute; and
WHEREAS, Every steel industry job supports up to five
additional jobs in the Pennsylvania economy and provides well-
paying, family-sustaining jobs; and
WHEREAS, Major steel mills were recently closed or idled in
Pennsylvania and across the United States; and
WHEREAS, Finished steel imports increased by a dramatic 36%
in 2014 and set an all-time record; and
WHEREAS, Finished steel imports captured 29% of the United
States market in 2015, the second consecutive year that figure
was at an all-time record, up from just 23% in 2013; and
WHEREAS, Domestic steel shipments declined by more than 12%
in 2015 and plant activity or capacity utilization averaged just
70% for 2015, well below levels necessary to be profitable; and
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WHEREAS, Multiple steel-producing countries are taking nearly
one-third of the domestic market which harms families and
communities and is a threat to our national economic security;
and
WHEREAS, A major cause of the steel-import surge is global
steel industry overcapacity, a measure of excess production
capacity above what is necessary to meet market demand; and
WHEREAS, China's steel industry, which now represents half of
all global steel production, is almost completely subsidized,
owned and state-supported by China's central and provincial
governments, with nine out of its top ten producers state owned;
and
WHEREAS, China continues to overproduce steel with the
backing of aggressive government support and trade policies that
are resulting in Chinese exports flooding every market around
the world and creating a domino effect on trade flows; and
WHEREAS, Chinese crude steel production soared from 128
million metric tons in 2000 to 823 million metric tons in 2014,
an increase of nearly 700 million tons; and
WHEREAS, The Organization for Economic Cooperation and
Development estimates that there are almost 700 million metric
tons of excess steel capacity globally today; and
WHEREAS, Much of the world's steel ends up in the United
States because we have the most open market in the world and
other countries are more aggressive in putting safeguards and
tariffs in place; therefore be it
RESOLVED, That the House of Representatives of the
Commonwealth of Pennsylvania urge the President, Senate and
House of Representatives of the United States to fight for
strong enforcement of our nation's trade laws in order to level
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the playing field with China and other countries and take
whatever action necessary to protect the domestic steel industry
from unfair foreign competition; and be it further
RESOLVED, That the House of Representatives urge the
Department of Commerce to maintain China's nonmarket economy
status, in order to preserve the ability of United States
companies and workers to access domestic trade remedy laws.
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