Steelmakers have idled mills and laid off workers, including hundreds in Northwest Indiana, amid an unprecedented tsunami of cheap imports this year.
But Congress has now passed legislation that would let ArcelorMittal, U.S. Steel Corp. and other steelmakers file more effective trade cases and get more timely relief. The U.S. House of Representatives voted 286-138 to approve a trade bill that renews the Trade Adjustment Assistance program for displaced workers and strengthens antidumping and countervailing-duty laws that shield domestic steelmakers from often illegally subsidized imports.
"I applaud Congress for passing groundbreaking trade legislation, giving President Obama the authority to negotiate strong trade agreements and open new markets for American goods and services while protecting American manufacturing and American workers," U.S. Steel President and CEO Mario Longhi said.
"The reauthorization of TAA, which supports displaced workers affected by unfair trade, also provides new language to ensure our trade laws confront unfair trade practices in the U.S. market. These legislative developments represent a victory for our efforts to level the playing field with countries who have taken advantage of our nation's trade laws for far too long."
Longhi said the legislation clarifies how much damage domestic steelmakers have to suffer before duties get imposed, which is crucial because the standard had been weakened to where it was no longer effective against 21st century trade practices, such as making the first sale at a higher price to face a lower tariff.
Foreign steelmakers know exactly how to game the system, Longhi said.
"By the time 'injury' has occurred and can be demonstrated, our markets have already been flooded with unfairly traded goods leading to suppressed prices, plant closures and layoffs," Longhi said. "This legislation allows American manufacturers to seek adequate and timely relief under U.S. trade laws."
The legislation, which still must be signed into law, is not a cure-all at a time when finished steel imports have captured nearly a third of the market, which is a historic high.
"We have fought, and will continue to fight, for fair trade," Longhi said.
"However, our fight to prevent unfairly traded products from flooding our shores does not end here. We remain resolute and will use all tools available, including this improved injury definition, to address illegal dumping and subsidized imports that injure the health of our company and employees."
Stronger trade enforcement is needed to protect the American steel industry, said Philip K. Bell, president of the Steel Manufacturers Association, which represents North American electric arc furnace steel producers. Upcoming trade agreements, including the Trans-Pacific Partnership, must strengthen international trading rule and promote U.S. exports, he said.
Jobs are at stake.
"We are focused first and foremost on strengthening our nation's trade enforcement and trade remedy provisions, and we view passage of this legislation as a major step in that process," Bell said.
"It is vitally important that U.S. trade laws remain an effective tool for domestic steel companies, their employees, and surrounding communities."
The legislative relief could not have come at a better time, since production and employment are significantly down because of the glut of imports, said Thomas Gibson, president and CEO of the American Iron and Steel Institute.