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Washington, D.C. – Congressman Pete Visclosky, Chairman of the Congressional Steel Caucus, today convened a hearing on the state of the steel industry. The panel featured a bipartisan group of Members of Congress who heard testimony from industry leaders on the steel industry’s legislative priorities, specifically job creation, fair trade, and climate change legislation.
“As the proud representative of Northwest Indiana’s steelmakers I am fully committed to ensuring the health of the industry,” said Visclosky. “To that end, protecting and creating jobs is my top priority and I will continue leading the fight for Buy American and fair trade.”
The hearing featured testimony from the following industry leaders:
- Tom Conway, International Vice President of the United Steelworkers;
- Dan DiMicco, Chairman, CEO, and President of the Nucor Corporation;
- Louis L. Schorsch, President and CEO of Flat Carbon Americas for ArcelorMittal
- John P. Surma, Chairman and CEO of the United States Steel Corporation; and
- James L. Wainscott, Chairman, President and CEO of the AK Steel Corporation and Chairman of the American Iron and Steel Institute.
Buy American
The participants in the hearing affirmed their support for the Buy American provision Visclosky included in the American Recovery and Reinvestment Act to require the use of American iron and steel in infrastructure projects funded by the economic revitalization effort. That Buy American provision, the witnesses asserted, will help the industry make more steel and employ more workers without violating international trade agreements.
“Buying American steel is a guaranteed way to protect and create jobs for steelworkers in Northwest Indiana and all across America,” said Visclosky. “The mills are operating below half capacity and many steelworkers are on layoff, ready to go back to work to make the steel we need to rebuild America. Buying American steel is a smart use of taxpayer dollars that will create American jobs and enable us to build a stronger, safer United States.”
“We think this is good, old fashioned common sense because it would create the biggest bang for taxpayer dollars by keeping and creating many more manufacturing jobs here in the United States,” testified Conway, a Northwest Indiana native.
“If we are going to spend trillions of our tax dollars to support U.S. banks, and build roads and bridges and schools across our great land, then we ought to make absolutely certain that the wages associated with that activity are paid to American workers,” testified Wainscott.
Fair Trade
In addition to discussing economic revitalization and Buy American, the panel highlighted the importance of remaining vigilant for unfair trade practices by other countries. The witnesses identified China as a country that employs unjust policies to give its steel industry a competitive advantage, in turn hurting American producers.
“We must remain constantly vigilant for unfair trade practices from other countries,” said Visclosky. “China is the poster boy when it comes to cheating at trade, but it is imperative that we enforce our trade laws against all unjust imports so that our workers can compete on a fair, level playing field. With the global economy struggling, other countries are going to try to export their unemployment to the U.S. and I will use every tool at my disposal to ensure that we stop them.”
“The fact is, we are already in a trade war—a war by some foreign governments on the American working family—where foreign protectionist governments and companies are using illegal and mercantilist trade practices every day, and the rules are not being enforced,” testified DiMicco. “It is time for our American leaders to stand up for working Americans and insist on law and order. That is why the next most important thing that Congress and the President can do is to enforce our trade laws, especially against China.”
“As we face such severe economic challenges it is critical that both the Congress and the Obama administration remain extraordinarily vigilant against those who would seek to subvert or ignore existing trade rules,” testified Schorsch. “In past periods of economic weakness—much less severe than what we face today—trading partners have been tempted to export their unemployment. Such behavior—more than so-called protectionism—is the major threat to our open, rules-based trading system. We urge you to do all you can to send the message that the US intends to vigorously uphold its rules in this very challenging environment.”
Energy and Climate Change
Lastly, participants in the hearing considered the effect energy and climate change policy would have on the steel industry. Specifically, the industry leaders expressed concern that cap and trade legislation has the potential to unfairly punish carbon-intensive industries like steel. They also reminded the Caucus that the steel industry can make other contributions to efforts aimed at climate change. For example, it now takes one third less energy to produce a ton of steel than it did in 1990 and steel is highly recyclable, extending its lifetime.
“I believe that climate change is real, that it is man made, and that we must take legislative action to reverse its course,” said Visclosky. “But when we do, the new law has to be fair and take into consideration that making steel requires carbon emissions. That way the steel industry can stay competitive and remain a solid employer.”
“Climate policy is not a side issue for us,” testified Surma. “It is a central, strategic concern already shaping the future of the global steel industry. Make no mistake, a million American jobs and billions of dollars in capital investment hang in the balance. Furthermore, global environmental progress is also at risk if U.S. policy impairs the competitiveness of American-made steel.”
The Congressional Steel Caucus is a bipartisan group of 100 Members of Congress who represent districts with steel manufacturers or care about the health of the American steel industry. Through legislation, roundtable discussions, and hearings, the Steel Caucus focuses on the needs of the steel industry and what it takes to level the playing field for employers and preserve American jobs. |
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