Levin, Stabenow and Stupak Welcome Initiation of Section 201 Investigation of Steel Imports, But Urge Inclusion of Semi-finished Steel

WASHINGTON – Sen. Carl Levin (D-Mich.), Sen. Debbie Stabenow (D-Mich.), and Rep. Bart Stupak (D-Menominee) welcomed today's announcement that the Bush Administration will initiate a Section 201 case to determine if the surge in imported steel is harming the domestic steel industry. However, they cautioned that the investigation must be comprehensive in scope to include basic steel making materials, such as iron ore and taconite, that are part of the integrated steel making process. The decision on whether or not to include iron ore and taconite in the investigation will not be made for a week or so.

Levin, Stabenow and Stupak have urged the administration to use U.S. trade laws to stem the dumping of foreign steel imports that are overwhelming domestic steel production and resulting in bankruptcies, plant closures and layoffs.

"We must do all we can do to stand up for a strong domestic steel industry in the face of unfair foreign trade practices," Levin said. "We have got to use our trade laws, including Section 201, to respond to the illegal trade practices that harm the U.S. steel industry and its employees."

"Failure to include semi-finished steel slab in the Section 201 investigation could mean the end of our domestic iron ore industry and our integrated steel making capabilities, and it could result in a flood of semi-finished imports as foreign steel manufacturers circumvent U.S. law," Levin continued.

"I am glad to see the administration agreed to our request and is taking action to address the grave situation facing our domestic steel and iron ore industries. We can no longer wait as steel imports continue to cripple our domestic industry. I hope that this investigation will lead to decisive action as soon as possible to crack down on the illegal dumping of foreign steel. Too many jobs throughout Michigan are at stake to do otherwise," Stabenow stated.

"I am very pleased the administration is aggressively addressing the problem of low-priced imports, which are hurting all segments of the steel industry, from iron ore to finished steel," Stupak said. "Protecting this vital industry from unfair competition protects American jobs, the American economy and American security."

"I will work with Sen. Levin, Sen. Stabenow and my House colleagues from iron-ore and steel-producing states to ensure that this 201 investigation looks at the impact of imports on the entire steel industry, and to ensure that the voices of the hard-working men and women in the iron ore mines of northern Michigan have been heard," Stupak continued.

The Section 201 law can provide import relief to facilitate efforts by a domestic industry which has been seriously injured by imports and provides authority for the President to withdraw or modify concessions and impose duties or other restrictions for a limited period of time on imports of any article which causes or threatens serious injury to the domestic industry.

As members of the Congressional Iron Ore Working Group, Levin, Stabenow and Stupak have pressed for a Section 201 investigation that would include semi-finished steel slab, which is mined in Michigan's Upper Peninsula. Because of the flood of cheap imports, it has become cheaper for steel mills to import steel slab and finish it rather than produce steel in the United States using iron ore and taconite, which has severely hurt these domestic industries.

Levin, Stabenow and Stupak have said that, if the administration's Section 201 case should omit semi-finished steel slab, they will press the Congressional committees with jurisdiction to initiate their own Section 201 case.