Washington, D.C.  -  Today, U.S. Rep. Phil English (R-Pa.), Vice-Chairman of the Congressional Steel Caucus, urged the International Trade Commission to grant domestic pipe and tube producers relief from illegally dumped and subsidized circular welded carbon-quality steel pipe imports from China.

“I have seen first-hand the degree of injury which has occurred in my district as a result of illegal Chinese imports, not only to employers and workers, but to entire communities,” said English, a senior member of the House Ways and Means Committee. 

Last year, six U.S. standard pipe steel producers, including Mercer County’s Wheatland Tube Company, filed a complaint with the Department of Commerce (DoC) and the International Trade Commission (ITC) alleging that Chinese imports of welded standard pipe are being dumped and subsidized. 

“It is critical for the Commission to act today and recognize the adverse impact of China’s reckless dumping on this industry,” English continued. “We must grant them necessary relief so they can have the opportunity to make the investments they need to revive their competitiveness and our local economies.”

During his testimony today, English noted that China’s illegal imports are taking a grave toll on communities in western Pennsylvania.  The Commonwealth of Pennsylvania accounts for 15 percent of the nation’s steel production, and at least 24,000 Pennsylvanians make their living in the steel industry.

“My district is comprised of small towns where steel is the backbone of local commerce,” English said.  “Absent the economic driver of manufacturing, other local businesses falter.  Clearly, our towns are suffering.”

Chinese imports of circular standard pipe increased from 382,000 tons in 2005 to 748,000 tons in 2007.  Even more, surging imports have displaced producers in terms of market share.  In 2005, standard imports from China comprised 16 percent of the U.S. market. By 2007, Chinese import share almost doubled, capturing nearly 30 percent of the market.

“It is the responsibility of Congress and the administration to ensure that American employers have the proper tools to fight illegally traded goods and service,” English said. “We must not turn a blind eye to this petition. We must grant this industry the relief they need to rehire laid off employees and restore economic stability to families and communities in western Pennsylvania.”

The ITC is expected to make a determination on the case on June 20. English led the fight to secure Trade Adjustment Assistance benefits for industry workers displaced by trade in his district and has been a long time advocate in Congress for strengthening U.S. trade remedy laws and ending Chinese mercantilist trade practices.

*Copy of English’s Testimony Follows:

The Honorable Phil English before the International Trade Commission
Circular Welded Carbon Quality Steel Pipe from China, Inv. Nos. 701-TA-447 and 731-TA-1116 (Final)
May 13, 2008

Good morning Chairman Pearson and Members of the Commission. 
 
Thank you for the opportunity to present testimony regarding dumped and subsidized imports of circular welded pipe from China.  For the record, I represent Pennsylvania’s 3rd Congressional District, serve as a senior member on the Committee on Ways and Means and the Joint Economic Committee, and I am also the Vice-Chairman of the Congressional Steel Caucus.
 
Today, I hope that I can sufficiently encapsulate both the importance of this industry and this investigation to communities in my congressional district.
 
Data on the relevant imports shows staggering increases in imports both in absolute terms as well as relative to domestic production and consumption.  In absolute terms, imports of standard pipe from China have increased from 382,000 tons to 748,000 tons during just 2005 to 2007.  The relative increases of these same imports have also been very large.
 
Surging Chinese imports have displaced domestic producers in terms of market share.  While in 2005 standard pipe imports from China comprised 16 percent of the U.S. market, by 2007 Chinese imports had captured nearly 30 percent of the market.  This lost volume for the standard pipe industry is also lost volume for the basic steel industry and its workers.
 
China is the largest producer of pipe and tube in the world.  The U.S. is not the only market threatened with this export powerhouse.  I understand that Australia, Canada, and the European Union are all engaged in the process of investigating injury to their respective pipe and tube producers as a result of the same Chinese exports.  In the United States, only the filing of this petition and looming imposition of preliminary duties were successful, at least temporarily, in reining in Chinese exporters.
 
My constituents in Sharon and Wheatland Pennsylvania, and the surrounding communities of Farrell, Sharpsville, and Hermitage have suffered the brunt of the injury documented on this record.  Hundreds of workers in these communities have been approved for Trade Adjustment Assistance, but that is not enough.  These are small towns where steel is the backbone of local commerce.  Absent the economic driver of manufacturing, other local businesses falter.  And be assured that Wheatland Tube is the largest manufacturing employer not just in Wheatland or Sharon but in all of Mercer County.
 
The towns themselves are suffering.  Farrell is a city that abuts Sharon on one side and Wheatland on the other.  Farrell has been declared a distressed community under Pennsylvania economic criteria.  Sharon most likely meets those criteria as well but is right now engaged in a reorganization of its city government as a last-ditch cost-savings effort.  Small cities suffering economic harm, a most inexcusable situation when the harm comes at the hands of illegal imports, they are faced with devastating choices to stay afloat.  Unfortunately, as this Commission has heard time and time again, the usual outcome is that libraries are closed, staffing for essential public safety services is reduced, and the city is in a weakened state to respond to the crisis that placed it in its current hardship.
 
I have worked with the Commission on many issues since coming to Congress.  I greatly respect all of the work you and your staff does.  I am hopeful this industry will get the relief it needs to rehire laid off employees and restore economic stability to families and communities in western Pennsylvania as well as throughout the United States.  Thank you.

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