Date: 1982-06-22
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. President. I am pleased to be an original cosponsor of this resolution to express the Senates support for prompt and vigorous enforcement of our trade laws affecting carbon steel and specialty steel. The steel industry has been one of the hardest hit sectors of our economy during the current recession. Steel Is a basic commodity that is used throughout the economyin automobiles. buildings. equipment. and consumer productsand as such it is directly affected by the downturn in those industries. While the domestic economic noblems facing the steel industry are great. there is a special threat from beyond our shores. Grossly unfair trading practices. in particular dumping and subsidization of steel. are being used extensively by European steelmakers. Those practices have turned a recession Into a depression for American steelmakers. More than 100.000 American steelworkers are on layoff. Another 31.000 are working short weeks. Both figures are climbing. as mill after mill reduces its operating capacity. For the week ended June 19. 1982. the steel industry yas operating at 45.4 percent of capacity. Last year at this time. the industry was operating at 81.4 percent of capacity. Steel production for the week ended June 19. 1982 was 1.345 million short tons. compared to 2.410 million short tons at this time last year. That is a 44.2 percent decrease in production. Such low operating levels cannot be sustained by privately owned firms that must compete with nationalized firms. or with companies that receive special subsidies from their governments. It appears that some European countries subsidize their steelmakers as a practical solution to unemployment problems. Unemployment rates in many of the European countries that are most active in unfair trading practices are low compared with the United States. This countrys current record postSecond World War high unemployment rate of 9.5 percent10.5 million peopleis nearly twice as great as West Germanys 5.6 percent. However. the unemployment problem is merely exported from Europe to America by the use of unfair and illegaltrading tactics. One purpose of this resolution is to urge the President to seek the timely enforcement of the trade laws that the United States has in force. The other purpose of this resolution is to state firmly the intention and willingness of the Senate to consider legislation to strengthen our trade laws. This Is a key factor in forming a credible trade policy for this country. I am already convinced -of the urgent need for more stringeut trade legislation. I have Introduced S. 2603. the Fair Trade Act of 1982. My bill would provide a mandatory relief mechanism for domestic firms who are being discriminated against In entering a foreign market. The purpose of my legislation is to provide a mechanism for fair. reciprocal treatment for American firms seeking foreign markets. and to reduce the incentive for unfair trading practices by making it possible for the United States to retaliate in kind. It is critical to let our trading partners know that we are serious about enforcing fair trade in steel. The effects of unfair trade do not stop at the steel industry. The metallurgical coal industry is now in the process of laying off thousands of minersincluding over 7.000 in the southern West Virginia coalfields. The overall number of unemployed coal miners in West Virginia is close to 9.900. The interdependence of the metallurgical coal industry and the steel industry causes increased suffering when unfair trade is victimizing domestic steelmakers. It is cold comfort when the unemployed coal miner joins the unemployed steelworker in the unemployment line. We must defend our industrial base. We have no choice but to do so. and in a forthright manner. The world that we inhabit is volatileanything could happen. America needs to have a secure strategic industrial base for its own defense. Both the specialty steel industry and the carbon steel industry are integral parts of a viable defense industrial base. I commend Secretary of Commerce Malcolm Baldrige for his announcement. on June 11. that the Commerce Department had found evidence of subsidization of steel producers by foreign governments. While the actual amount of the subsidies found by the Commerce Department were in most cases less than the level alleged by American steelmakers. the ruling by Secretary Baldrige is a very hopeful sign. I urge the Secretary to pursue these subsidization cases to a successful conclusion. The antidumping cases filed by the domestic steel producers are still under investigation by the Commerce Department. I know that my colleagues would join me in urging that these cases be pursued vigorously as well. I hope that the practical effect of this resolution will cause our European trading partners to closely examine their practices with respect to the steel business. The unemployed steelworkers in West Virginia and in many other States are not going to wait patiently for relief. The modern. competitive steelmakers in this country are not willing to see their industry crumble Into dust. Our commitment to the steel industry and its thousands of employees is firm. The 2.000 laidoff workers at Weirton Steel in West Virginias northern panhandle. and the 8.000 steelworkers still on the job. for the present. at that mill. want to see their Government help them. The least that we can do is to tell them with one voice-"We are on your side. and fighting or fairness for American freeenterprit e." Mr. Presidmt. I congratulate Mr. HEINz. I commend him on the introduction of th s resolution. I am happy to support him and join him In speaking on behalf of the resolution. I hope that the Senate will quickly adopt it.