PRINTER'S NO. 2302
No. 251 Session of 1998
INTRODUCED BY MURPHY, WAGNER, STOUT, LAVALLE, CONTI, KUKOVICH,
COSTA, TOMLINSON, KASUNIC, BELAN, MELLOW, ULIANA, STAPLETON,
BODACK, ROBBINS, O'PAKE, EARLL, WHITE, GERLACH, THOMPSON,
BRIGHTBILL AND WOZNIAK, NOVEMBER 18, 1998
INTRODUCED AND ADOPTED, NOVEMBER 18, 1998
A RESOLUTION
1 Further calling on the President of the United States and the
2 Federal Government to take all necessary and appropriate
3 action to respond to the surge of specialty steel imports
4 resulting from the economic and financial crises in Asia,
5 Russia and other foreign nations.
6 WHEREAS, Metal manufacturing is integral to the economy of
7 this Commonwealth, employing 72,900 workers in the primary metal
8 industry and 86,200 workers in the fabricated metal products
9 industry; and
10 WHEREAS, The specialty steel industry, which includes
11 stainless steel, tool steel and other alloyed metal steel, holds
12 a quintessential position in the economic and industrial history
13 of this Commonwealth and the United States. In addition, the
14 specialty steel industry continues to be a major contributor to
15 the financial and economic well-being of this Commonwealth and
16 the United States. Furthermore, the United States steel industry
17 has worked hard to restructure, modernize and become a world
18 leader in productivity and competitiveness; and
1 WHEREAS, The current economic and financial crises in Russia,
2 Asia and other foreign nations have involved severe devaluation
3 of the currencies of several primary steel-producing and steel-
4 consuming countries along with a collapse in the domestic demand
5 for steel and specialty steel in these countries; and
6 WHEREAS, In response to the dramatic fall in the currencies
7 of these foreign nations, the foreign steel producers within
8 these countries have begun flooding the American market with
9 foreign steel and foreign steel products at prices severely
10 below production cost, thereby posing an unfair advantage in the
11 marketplace to the American steel industry and its workers,
12 while the United States continues, through the International
13 Monetary Fund, to participate in a massive financial bailout of
14 these countries in a manner that encourages the exports into the
15 marketplace; and
16 WHEREAS, Imports of specialty steel from foreign producers
17 are being dumped into this country in large quantities at
18 unfair, below-market prices, contributing significantly to
19 reduced earnings and reductions in employment and restricting
20 current and future economic growth; and
21 WHEREAS, Despite increased worldwide demand for specialty
22 steel, prices for stainless steel continue to drop due to the
23 proliferation of foreign stainless steel imports on the domestic
24 market backed by foreign government subsidies and practices
25 which allow these foreign steel producers to sell their goods in
26 the United States at below-market prices; and
27 WHEREAS, Preliminary results confirm that the dumping of
28 stainless steel plate in coils and other specialty steel
29 products is prevalent in the United States market, causing an
30 adverse impact on domestic steel production and the thousands of
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1 jobs in this Commonwealth and the United States associated with
2 the regular and specialty steel industry; and
3 WHEREAS, During the first five months of 1998, imports of
4 stainless steel reached 355,000 tons, a 13% jump from the same
5 period in 1997, while domestic consumption of stainless steel
6 during the same period has risen only 3%; and
7 WHEREAS, Stainless steel imports from Germany, Italy, Japan,
8 South Korea and Taiwan increased 107.9% in July and August of
9 this year compared to April 1997 through June 1998; and
10 WHEREAS, Stainless rod steel imports from Italy, Germany,
11 Japan, South Korea, Spain, Sweden and Taiwan increased 2%
12 between 1994 and 1996 from 45,652 tons to 58,371 tons, while
13 domestic stainless rod production decreased 17% during the same
14 period, despite an increase in domestic consumption for this
15 period; and
16 WHEREAS, On March 31, 1998, the United States Department of
17 Commerce commenced an investigation into charges, raised by four
18 United States producers of stainless steel plate in coils, of
19 the dumping of stainless steel plate in coils by foreign
20 companies and foreign government subsidization in that industry;
21 and
22 WHEREAS, On September 1, 1998, the Department of Commerce
23 announced preliminary countervailing duties on the import of
24 stainless steel plate in coils from the following countries:
25 Korea, Italy, Belgium and South Africa; and
26 WHEREAS, Practices of foreign governments such as subsidies,
27 grants, debt forgiveness and equity infusions contribute greatly
28 to the influx of specialty steel into the domestic market in
29 violation of the United States trade laws; and
30 WHEREAS, The President of the United States and the Federal
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1 Government need to continue these efforts by further enforcing
2 and strengthening United States trade laws; and
3 WHEREAS, The European Union and Japan have been unwilling or
4 unable to share equitably in the burden of adjusting to the
5 global economic crises facing Russia and Asia; therefore be it
6 RESOLVED, That the Senate of the Commonwealth of Pennsylvania
7 call on the President of the United States and the Federal
8 Government to take all necessary and appropriate action to:
9 (1) Pursue enhanced enforcement of United States trade
10 laws with respect to the surge of steel imports into the
11 United States, using all remedies available under those laws,
12 including duties relating to stainless steel plate in coils.
13 (2) Continue to impose antidumping duties on imports of
14 specialty steel from these foreign nations.
15 (3) Work to establish a more equitable distribution of
16 the burden of accepting imports of specialty steel from
17 foreign nations.
18 (4) Establish a task force within the Executive Branch
19 of the Federal Government with responsibility for closely
20 monitoring United States imports of specialty steel,
21 including stainless steel plate in coils.
22 (5) Report to the Congress of the United States no later
23 than January 5, 1999, with a comprehensive, workable plan for
24 addressing the surge in all steel imports, including the
25 negative effects on employment, prices and investments in the
26 American specialty and regular steel industry; and be it
27 further
28 RESOLVED, That copies of this resolution be transmitted to
29 the President of the United States, the United States Trade
30 Representative and to each member of Congress from Pennsylvania.
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