NWI.com - Visclosky Warns China Trade Status Could Mean 600,000 Layoffs

Op-Ed

By Congressman Pete Visclosky

U.S. Rep. Pete Visclosky, D-Merrillville, hopes to talk with President Barack Obama about the surge of steel imports flooding the United States, grabbing a higher market share than in the early 2000s, when more than 30 American steelmakers went out of business.

Visclosky and Congressional Steel Caucus Chairman Tim Murphy wrote a letter to Obama requesting a meeting to discuss the cheap imports that have been blamed for more than 13,500 steelworkers layoffs nationwide.

The Congressional Steel Caucus wrote in the letter foreign countries have evaded U.S. trade laws and manipulated currencies to keep their exports artificially cheap. They warned of economic catastrophe if China were granted market status by the World Trade Organization, giving it a green light to send more steel to U.S. ports.

"China's government-owned and government-supported steel companies subsidize their low-quality steel products to the threshold where American producers can no longer compete on a fair playing field," Visclosky and Murphy wrote in the letter. "Recognition of China as a market economy by the WTO would be devastating to the American steel market and its supply chain costing upwards of 600,000 additional job losses and sending catastrophic shock waves across the entire United States economy."

They've been calling upon the administration to enforce laws Congress passed to restrict imports, such as by allowing U.S. Customs to initiate investigations into companies trying to duck tariffs by misrepresenting what country the steel actually came from.

"Congress has acted to support the American steel industry," said Visclosky, who is vice chairman of the Congressional Steel Caucus. "It is now time for the administration to take the next step. I look forward to meeting with President Obama to discuss how we can work together to address the surge of illegal steel imports and defend the American steelworkers and steel producers who provide an invaluable foundation to our communities and national security."

Visclosky and Murphy said the situation is dire after steel dumping caused many steel mills around the country to close their doors. Steel dumping is when foreign steelmakers sell steel here at a loss or for less than they could in their home country.

The congressional representatives are asking Obama to ensure that China still has non-market economy status in the World Trade Organization so the United States can continue to impose the same tariffs and aggressively enforce trade laws, including a new one that lets the International Trade Commission use real-time economic data when considering duties.

"Our efforts mark the first time in over 20 years Congress has made such an impact to our nation's trade remedy laws to protect American steelworkers and industry from the onslaught of foreign illegal trade," Murphy said. "The legislation is in place, the administration has the tools but now they must take action. I look forward to meeting with President Obama to work together to ensure strong enforcement standards remain at the forefront of this administration's agenda."

Source