I 

109TH CONGRESS 

2D SESSION H. R. 5627 

To prohibit the Overseas Private Investment Corporation from providing 

insurance or financing to countries that subsidize their steel industries 

and for projects producing goods subject to antidumping duties, to require the United States to oppose the provision by the International 

Monetary Fund of assistance to countries which subsidize their steel 

industries, and to ban assistance by the Export-Import Bank of the 

United States to countries that subsidize their steel industries. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 15, 2006 

Mr. PAUL (for himself and Mr. SANDERS) introduced the following bill; which 

was referred to the Committee on Financial Services, and in addition to 

the Committee on International Relations, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To prohibit the Overseas Private Investment Corporation 

from providing insurance or financing to countries that 

subsidize their steel industries and for projects producing 

goods subject to antidumping duties, to require the 

United States to oppose the provision by the International Monetary Fund of assistance to countries which 

subsidize their steel industries, and to ban assistance 

by the Export-Import Bank of the United States to 

countries that subsidize their steel industries. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Steel Financing Fair5 ness Act’’. 

6 SEC. 2. PROHIBITION ON OPIC FINANCING AND INSURANCE 

7 TO COUNTRIES THAT SUBSIDIZE THEIR 

8 STEEL INDUSTRIES AND FOR PROJECTS PRO9 DUCING GOODS SUBJECT TO ANTIDUMPING 

10 DUTIES. 

11 (a) SUBSIDIZATION.— 

12 (1) PROHIBITION.—The Overseas Private In13 vestment Corporation may not issue any contract of 

14 insurance or reinsurance or any guaranty, or enter 

15 into any agreement to provide financing, in connec16 tion with a project in a country which provides a 

17 subsidy to its steel industry, until 3 months after the 

18 subsidy is eliminated. 

19 (2) DEFINITION.—For purposes of paragraph 

20 (1), a country provides a subsidy to its steel industry 

21 if the government of that country provides financial 

22 support directly or indirectly to any business concern 

23 in that country that produces or manufactures any 

24 steel product. 


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1 (b) ANTIDUMPING ORDERS.—The Overseas Private 

2 Investment Corporation may not issue any contract of in3 surance or reinsurance or any guaranty, or enter into any 

4 agreement to provide financing, in connection with a 

5 project that would be engaged in the production or manu6 facture outside the United States of any product on which 

7 antidumping duties are in effect under an antidumping 

8 duty order issued under subtitle B of title VII of the Tariff 

9 Act of 1930 or under a finding under the Antidumping 

10 Act, 1921, regardless of the country in which such product 

11 would be produced or manufactured. 

12 SEC. 3. UNITED STATES OPPOSITION TO IMF ASSISTANCE 

13 TO COUNTRIES THAT SUBSIDIZE THEIR 

14 STEEL INDUSTRIES. 

15 The Bretton Woods Agreements Act (22 U.S.C. 286– 

16 286oo) is amended by adding at the end the following: 

17 ‘‘SEC. 64. OPPOSITION TO IMF ASSISTANCE TO COUNTRIES 

18 WHICH SUBSIDIZE THEIR STEEL INDUSTRIES. 

19 ‘‘(a) UNITED STATES POSITION.— 

20 ‘‘(1) IN GENERAL.—The Secretary of the 

21 Treasury shall instruct the United States Executive 

22 Director at the Fund to use the voice, vote, and in23 fluence of the United States to oppose the provision 

24 by the Fund of assistance in any form to any foreign 

25 country the government of which subsidizes the steel 


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1 industry of the foreign country, until 3 months after 

2 the subsidy is eliminated. 

3 ‘‘(2) SUBSIDIZE DEFINED.—In paragraph (1), 

4 the term ‘subsidize’ means, with respect to the steel 

5 industry of a foreign country, the provision of finan6 cial support directly or indirectly to any business 

7 concern in the foreign country that produces or 

8 manufactures any steel product. 

9 ‘‘(b) REDUCTION OF UNITED STATES CONTRIBU10 TIONS.— 

11 ‘‘(1) IN GENERAL.—If, during the 3-month pe12 riod referred to in subsection (a)(1), the Fund pro13 vides assistance in any form to a foreign country re14 ferred to in subsection (a)(1), the Secretary of the 

15 Treasury shall reduce the amount otherwise author16 ized to be contributed by the United States to the 

17 Fund in the first fiscal year that begins after the 

18 provision of the assistance by a percentage equal 

19 to— 

20 ‘‘(A) the amount contributed by the United 

21 States to the Fund in the fiscal year in which 

22 the assistance is so provided, divided by the 

23 total of the amounts contributed to the Fund 

24 by all member countries in the fiscal year in 


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1 which the assistance is so provided; multiplied 

2 by 

3 ‘‘(B) the total amount of assistance pro4 vided by the Fund to the foreign country in the 

5 fiscal year referred to in subparagraph (A), di6 vided by the total amount of assistance pro7 vided by the Fund to all countries in the fiscal 

8 year referred to in subparagraph (A). 

9 ‘‘(2) CONTINUATION OF REDUCTIONS IF NEC10 ESSARY TO RECOVER FULL AMOUNT OF OPPOSED

11 ASSISTANCE.—The Secretary shall continue to re12 duce the amount otherwise authorized to be contrib13 uted by the United States to the Fund for suc14 ceeding fiscal years until the total amount of the re15 ductions under paragraph (1) with respect to the 

16 foreign country equals the amount of the assistance 

17 referred to in paragraph (1) with respect to the for18 eign country. 

19 ‘‘(c) NOTICE TO THE CONGRESS OF AMOUNT OF IM20 PENDING REDUCTION.—Within 60 legislative days after 

21 the Fund, during the 3-month period referred to in sub22 section (a), provides assistance in any form to a foreign 

23 country referred to in subsection (a), the Secretary of the 

24 Treasury shall— 


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1 ‘‘(1) determine the amount by which the United 

2 States contribution to the Fund is required to be re3 duced under subsection (b); and 

4 ‘‘(2) notify the Committee on Financial Services 

5 of the House of Representatives and the Committee 

6 on Foreign Relations of the Senate of the amount of 

7 the required reduction.’’. 

8 SEC. 4. BAN ON EXPORT-IMPORT BANK ASSISTANCE TO 

9 COUNTRIES THAT SUBSIDIZE THEIR STEEL 

10 INDUSTRIES. 

11 Section 2(b) of the Export-Import Bank Act of 1945 

12 (12 U.S.C. 635(b)) is amended by adding at the end the 

13 following: 

14 ‘‘(13) BAN ON ASSISTANCE TO COUNTRIES THAT

15 SUBSIDIZE THEIR STEEL INDUSTRIES.— 

16 ‘‘(A) IN GENERAL.—The Bank may not guar17 antee, insure, or extend (or participate in the exten18 sion of) credit in connection with the export of any 

19 good or service to any foreign country the govern20 ment of which subsidizes the steel industry of the 

21 country, until 3 months after the subsidy is elimi22 nated. 

23 ‘‘(B) SUBSIDIZE DEFINED.—In subparagraph 

24 (A), the term ‘subsidize’ means, with respect to the 

25 steel industry of a country, the provision of financial 


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1 support directly or indirectly to any business concern 

2 in the country that produces or manufactures any 

3 steel product.’’. 

Æ 


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