Specter Bill Would Add Tool in Fight Against Harmful Trade Practices

Press Release

Specter Bill Would Add Tool in Fight Against Harmful Trade Practices

U.S. Senator Arlen Specter (D-Pa.) has introduced legislation that seeks to help domestic manufacturers by enforcing trade remedy laws. The Unfair Foreign Competition Act of 2010 provides a private right of action for domestic manufacturers injured by illegal subsidization or dumping of foreign products into U.S. markets.
Senator Bob Casey (D-Pa.) and Senator Sherrod Brown (D-Ohio) are cosponsors. The bill has been referred to the Senate Committee on Finance.

"Job creation and job retention in this country depend, in large part, on our ability to enforce existing trade laws," Senator Specter said. "This legislation would give an injured industry the opportunity to seek reliable enforcement in federal court so that we can stop anticompetitive, predatory trade practices which steal jobs from our workers, profits from our companies, and growth from our economy."

"Unfair trade practices have shipped Pennsylvania jobs oversees and increased our trade deficit," said Senator Casey. "One of the best job creations strategies is to make foreign governments play by the rules and create a level playing field for American workers."

Senator Brown said: "If we're going to create manufacturing jobs, we need to start enforcing trade law. American manufacturers can compete with anyone -- but they need a level playing field. This bill would prevent a flood of unfairly-subsidized imports from shuttering our factories."

The Unfair Foreign Competition Act of 2010 would allow petitioning parties to bring a civil action in a U.S. district court for an injury finding in lieu of a determination by the International Trade Commission (ITC). Allowing petitioners to choose between the ITC and their local U.S. district court for the injury determination would give injured domestic producers the opportunity to serve as private plaintiffs in seeking enforcement of trade remedy laws. The nonpolitical venue would also alleviate the potential for inconsistencies and partisanship in enforcement remedies.

The legislation comes as China continues to engage in trade and market-distorting practices in violation of WTO rules and U.S. laws. By allowing countries like China to ignore international trade rules, the U.S. has lost countless manufacturing jobs and has a skyrocketing trade deficit. The latest trade numbers indicate that imports from China have exceeded U.S. exports by a staggering $208.6 billion.

Senator Specter has a long record of advocating for stronger enforcement of U.S. trade laws for domestic industries. He has testified in front of the International Trade Commission (ITC) on 14 separate occasions on behalf steel and labor, arguing that unfair trade has negatively impacted the entire steel industry - which employs over 20,000 workers in Pennsylvania - and sent thousands of jobs overseas. Senator Specter introduced similar legislation in 1999 and 2007.

A copy of Senator Specter's floor statement on the bill is attached.

About the Unfair Foreign Competition Act of 2010:

* Allows petitioning parties in an antidumping or subsidy investigation (or 5-year sunset review) to elect to bring a civil action in a U.S. district court for an injury determination.

* Election to bring action in district court would be in lieu of a determination by the International Trade Commission (the "ITC").

* The district court would apply the same standards in determining an injury (required by WTO).

* The ITC staff would compile a record on which interested parties may file a brief or make oral arguments before the court.

* An order issued by the district court would be appealable to a U.S. Court of Appeals.

* The civil action may be brought in a judicial district where a manufacturing facility, sales office, or headquarters is located.

* Time constraints (similar to those of the ITC) are placed on the court to issue determinations. Time extension is available.

* The legal standard for determining dumping or subsidy margins B which is established by the Commerce Department B would remain unchanged.

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