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WASHINGTON, D.C. – U.S. Representative Marion Berry (D-AR, 1st) testified today before the U.S. International Trade Commission (ITC) on behalf of seven U.S. steel producers who are seeking relief from a surge of imports in standard pipe from China. Congressman Berry was joined at the hearing by Senator Blanche Lincoln, Arkansas State Representative Marvin Childers, Mississippi County Judge Steve McGuire, and company representatives from IPSCO, Maverick, and Nucor Steel.
"Our congressional district is one of the largest steel producing districts in the United States with the potential to grow even larger," said Congressman Berry. "Unfortunately, our companies along the Mississippi River are losing ground to companies in China that do not play by the same rules. If we want to see our local economy continue to expand, we need to do everything in our power to level the playing field so our companies can regain their competitive advantage."
Over the past few years, Chinese imports in standard pipe increased dramatically from 10,000 tons in 2002 to 256,600 tons in 2004 causing China's market share to reach 16.4% this year. This surge in imports has threatened U.S. production and has forced many companies to lay off workers or scale back production. If conditions continue, future expansions could be in jeopardy limiting the potential for new jobs along the Mississippi River.
On August 2, 2005, seven steel companies filed a petition with the ITC claiming that the surge in Chinese imports violated section 421 of the Trade Act of 1974 by causing a significant market disruption. Section 421 defines market disruption as any instance where imports increase rapidly and cause material injury to the domestic industry. The ITC held a hearing today to listen to witness testimony and issue a ruling on the case. Once the ITC reaches a decision, it will send its recommendations to the President for approval.
"I do not understand how the Chinese have taken over almost 20% of the market for standard pipe in this country when we have the most efficient steel mills and pipe mills in the world," said Congressman Berry. "Something does not seem fair about our trade relationship with China. I hope the ITC, the Administration, and Congress do something soon so that our companies and workers do not lose any more ground as foreign imports overwhelm our market."
Once a petition is filed with the ITC, the Commission has 60 days to submit its determination to the President and the U.S. Trade Representative. The U.S. Trade Representative will then make a recommendation to the President no later than 55 days from the initial determination. Once the recommendation is in the President's hands, he has 15 days to make a final decision on whether to provide the companies with any relief.
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