Official Letters Show Congressman Portman Fought for Government-Subsidized Chinese Steel Makers Over Ohio Workers

Press Release

Portman's Failure to Impose 2005 Quota on Chinese Steel Sent Ohio Jobs Overseas

Official letters show that Congressman Rob Portman fought to protect Chinese government-subsidized steel manufacturers over Ohio workers, despite pleas from domestic manufacturers for a quota on Chinese imports. Portman, then the U.S. Trade Representative under President George W. Bush, opposed a quota on Chinese steel piping after the Chinese Minister of Commerce lobbied Portman, despite a finding by the U.S. International Trade Commission which recommended restricting the flow of such imports in accordance with U.S. Trade law.

In his official 2006 letter (attached), Trade Representative Portman wrote that imposing a quota on Chinese piping, commonly used in sprinkler systems, air conditioning and fencing, was "not in the U.S. national economic interest." Yet trade records shows found that Chinese steel dumping had spiked to 380,000 metric tons in 2005 from only 10,000 tons in 2002. After Portman's failure to act, Chinese imports doubled to 750,000 tons.

More importantly, because Portman failed to fight for Ohio, Ohio jobs were lost:
* The U.S. steel industry lost $150 million in profits from 2005 to 2007.
* U.S. steel pipe manufacturers found that 500 pipe workers lost jobs, about 25% of their work force, due to Chinese steel imports.
* More than 400 steelworkers in Lorain lost work due to Chinese steel imports

Congressman Portman's decision to stand up for Chinese steel manufacturers came after a 2005 ruling by the U.S. International Trade Commission recommending a quota. The ITC found that Chinese steel pipe imports "cause[d] market disruption to the domestic producers of like products."

The Chinese government lobbied hard against a quota. In late 2005, China's Minister Of Commerce wrote to Portman urging him to oppose a quota, saying, "[a quota] will bring serious adverse impact to the bilateral economic and trade relationship."

Fisher said, "When Congressman Portman had the chance to defend Ohio workers and their families that depend on our steel industry, he sold them out under pressure from the Chinese government. Congressman Portman spent two decades in Washington supporting policies that gave tax breaks for companies to ship jobs overseas and undermined Ohio workers. Simply put, if you want to see the jobs Congressman Portman has created, you'd have to go to China."

THE FISHER PLAN
1. Tear Down Unfair Trade Barriers to American Exports by Enforcing Trade Laws
2. Eliminate Incentives for Companies that Ship Jobs Overseas

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