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Steel Caucus Wants Import Monitoring Extended
"WASHINGTON -- Members of the Congressional Steel Caucus, which includes U.S. Rep. Ted Strickland, D-Ohio 6th, are asking the incoming secretary of commerce, Carlos Guttierez, to make permanent the steel import monitoring system.The steel import monitoring system was implemented as part of President Bush's steel safeguard program. It helps the federal government and domestic steel industry to identify surges or spikes from certain trading partners that may try to illegally dump subsidized steel into the US market. "This program is integral to helping domestic steel producers guard against unfair, illegal imports," said Strickland. "There is wide, bipartisan agreement on the effectiveness of this program, including support from labor, corporate and international entities. It's just common sense to make the program permanent."In June, 2001, President Bush asked the International Trade Commission to investigate whether foreign steel producers had unlawfully flooded the American market with underpriced steel. The ITC found that the domestic steel industry had, in fact, been damaged by the illegal dumping of foreign steel in the U.S., allowing President Bush to impose a tariff on imported steel products and establish a program to monitor steel imports into the United States.Although President Bush prematurely ended the tariffs on imported steel, he allowed the monitoring program to continue. But it is scheduled to end March 20.In their letter, sent today, the members of Congress point out that the monitoring program played a major role in helping the domestic steel industry recover from near collapse."[W]e believe the tariff component of the president's steel safeguard program helped stabilize the market and allowed necessary breathing room for consolidation to take place," the letter states. "[T]he program received not only unanimous support from domestic producers, but strong endorsement from numerous other parties, including steel consumers and foreign steel producers."Continuing this program on a permanent basis and expanding it to cover all steel mill products in no way inhibits imports," the letter went on to say. "[T]his program is fully compliant with our international trading obligations and will provide vital information to both the government and market participants."Here is the full text of the letter:Dear Secretary Gutierrez:As members of the Congressional Steel Caucus Executive Committee, we strongly urge you to extend and enhance the steel import monitoring system prior to its upcoming expiration.As you know, the steel import monitoring system was implemented as part of the president's three-pronged steel program. Under current regulations promulgated by the Department of Commerce, this vital program will expire on March 20. We believe this program should be made permanent and be enhanced to cover all steel products.The steel import monitoring program proved an invaluable tool while the steel safeguard was active; enabling government and industry to identify surges or spikes from certain trading partners wishing to circumvent the President's safeguard order. This program, however, is as vital today as it was while the steel safeguard was in place.Indeed, comments received by the department from a number of interested parties in response to its Federal Register notice in September 2004 demonstrated the program's continued usefulness in the future. The comments provided to your Department evince that the steel import monitoring system is the best option to provide information and data to policy makers and market participants. During the comment period, the program received not only unanimous support from domestic producers, but strong endorsement from numerous other parties, including steel consumers and foreign steel producers.You may also be aware that we, along with 64 of our other colleagues in the House of Representatives, signed a letter to Secretary Evans during the comment period in strong support of the program and its continued administration by the Department of Commerce. Sixteen United States Senators signed a similar letter. While we believe the tariff component of the president's steel safeguard program helped stabilize the market and allowed necessary breathing room for consolidation to take place, the steel safeguard program was only one component of the president's steel program.We believe quick and decisive steps must be taken to advance other components and goals of the president's program in order for stability to remain in the steel market. The most imperative of these remaining steps is implementing a permanent, expanded steel import monitoring system.Continuing this program on a permanent basis and expanding it to cover all steel mill products in no way inhibits imports. Nor does it directly contribute to price increases for covered products. Additionally, this program is fully compliant with our international trading obligations and will provide vital information to both the government and market participants. We have heard no objections to continuing this program from the administration or Congress and would ask that you respond to us well in advance of the program's expiration with a report on your department's actions taken to date, as well as any planned actions pertaining to this program.We appreciate your attention to this matter and look forward to your prompt response."