For Release: Tuesday, October 17, 2006
Contact: David Gillies: 202-225-5661
COSTELLO URGES ITC TO MAINTAIN DUTIES ON CORROSION-RESISTANT STEEL
Washington - U.S. Congressman Jerry Costello (D-IL) today submitted testimony to the International Trade Commission (ITC) urging it to retain anti-dumping (AD) and countervailing duty (CVD) orders currently in place on corrosion-resistant steel manufactured in Australia, Canada, France, Germany, Japan and Korea. Costello made a strong case that removing the duties would invite the illegal dumping of foreign steel in the U.S., reversing the strides made by the U.S. steel industry in recent years.
"In the congressional district I am privileged to represent, Granite City Works is one of five integrated steelmaking facilities U. S. Steel operates in the United States . I am proud to say Granite City Works is a lead supplier of high-quality, low-cost, corrosion-resistant steel products, employing 2,210 people, as well as thousands of more jobs to those in the surrounding communities..If the AD and CVD orders are lifted now, I am concerned foreign countries would continue to ship dumped and subsidized products, causing the domestic steel industry to suffer," wrote Costello.
The duties have been in place since 1993 and have played an important role, along with other measures, in helping the domestic steel industry recover from a devastating period between 1997 and 2002 that saw at least 23 U.S. steel companies declare bankruptcy, including Laclede Steel in Alton. U.S. steel makers are efficient and are a critical component of the national economy.
"Simply put, at the local level and at the national level, the AD and CVD orders on corrosion-resistant steel are extremely important to our domestic steel producers. For Granite City Works, these duty orders mean jobs for my constituents, and a strong local economy. At the national level, affirming the duty orders protects domestic workers and businesses against unfair trade practices," stated Costello.
Costello is a member of the Congressional Steel Caucus and has been very active on issues affecting the domestic steel industry. He urged the President to direct the ITC to undertake a Section 201 investigation of steel imports in 2001, and Costello testified before the ITC to make the case for strong relief. The ITC determined later that year that the U.S. steel industry has been significantly harmed by illegal foreign imports. Costello then asked President Bush to enact 40% tariffs; the President decided on 30% tariffs on selected steel products in March of 2002. The 12th Congressional District is home to the Granite City Works and Alton Steel.
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