BY ANDREA HOLECEK, Times of Northwest Indiana
holecek@nwitimes.com
Major U.S. steel industry leaders testified on the sorry state of the industry before the Congressional Steel Caucus Wednesday, asking lawmakers to uphold trade laws and pass sensible climate change regulations that don't hinder domestic steel production unfairly.
The Buy American provision of the Obama administration's almost $900 billion economic stimulus package took center stage.
The caucus, chaired by Rep. Pete Visclosky, D-Ind., works in support of the domestic steel industry.
"The single most pressing issue for steel, and our economy as a whole, is revitalization," said Visclosky, adding that his Northwest Indiana congressional district has had almost 600 steelworkers laid off and many more put on a shortened work weeks.
"These layoffs have serious repercussions throughout our local economy, and sitting idly by is just not an option."
Visclosky, who with Rep. Tim Murphy, R-Pa., introduced the Buy American provision that was added to the American Recovery and Reinvestment Act, said the requirement is a way to support those with jobs and return those currently unemployed to the work force. It would require, with few exceptions, that U.S. produced steel be used in infrastructure projects funded by the proposed federal stimulus bill.
Louis Schorsch, president and chief executive officer of Flat Carbon Americas for ArcelorMittal, expressed the companies support of the Buy American provision while also stressing the importance of free trade.
He said his company, which operates worldwide, "has a major material interest in ensuring that trade flows freely and openly within the steel market.
Schorsch called on Congress and the Obama administration to remain vigilant against those who would seek to subvert or ignore existing trade rules.
"Such behavior, more than so-called protectionism, is the major threat to our open, rules-based trading system," Schorsch said. "We urge you to do all you can to send the message that the U.S. intends to vigorously uphold its rules in this very challenging environment."
John Surma, CEO of U.S. Steel Corp., didn't address the Buy American provision during the hearing, instead focusing his remarks on the topic of climate change. He cautioned Congress against the hasty adoption of "a massive regulatory scheme that will affect the entire U.S. economy when we can least afford it.
"Given the state of global competition, we believe carbon control policy should be developed and implemented on a sector-by-sector basis -- at least for global industries like steel, where 40 percent of steel is traded internationally," Surma said.
"It is inconceivable to us that U.S. companies might be disadvantaged by substantial new costs or regulations not borne, for example, by steel producers in China, India or Russia..."
Tom Conway, United Steelworkers international vice president, said that despite the union representing workers in the steel industry in the U.S. and in Canada, it supports the placement of the Buy American iron and steel requirement in the stimulus package.
"Laws to buy American-made goods when the government spends funds on public works and infrastructure are nothing new or unusual," he said. "They have been in existence for decades and applied consistently with our international obligations."