Countries like China, Taiwan, Brazil, Japan, and South Korea are dumping steel into the U.S. and Canada, depriving domestic steel industries of the benefits of both current and future growth; Unfairly priced foreign steel displaces steel from domestic producers that employ American and Canadian workers and harms businesses in mining communities 

In a letter to President Obama, Prime Minister Trudeau, and President Nieto, lawmakers called for the leaders to come together during the North American Leaders’ Summit and discuss ways in which our countries can effectively work to address the issues of unprecedented global steel overcapacity and unfair trade practices

WASHINGTON, DC – Today, U.S. Senators Amy Klobuchar and Al Franken, Representative Rick Nolan, and colleagues in the Congressional Steel Caucus joined with Members of the Canadian Parliament and urged President Obama, Prime Minister Trudeau of Canada, and President Nieto of Mexico to address Chinese steel overcapacity and steel dumping at today’s North American Leaders’ Summit in Ottawa. Countries like China, Taiwan, Brazil, Japan, and South Korea are dumping hot-rolled, cold-rolled, and corrosion-resistant steel into the U.S. and Canada, depriving domestic steel industries of the benefits of both current and future growth. Unfairly priced foreign steel displaces steel from domestic producers that employ American and Canadian workers and harms businesses in mining communities. In a letter to President Obama, Prime Minister Trudeau, and President Nieto, the lawmakers called for the leaders to come together during the North American Leaders’ Summit and discuss ways in which our countries can effectively work to address the issues of unprecedented global steel overcapacity and unfair trade practices.

“Steel produced with these unfair trade practices has had profound and harmful impacts on the economic and national security interests of our two countries,” the lawmakers wrote. “In order to protect our countries’ economic wellbeing and the environment, it is vital that the United States and Canada address unfair steel dumping on a priority basis, and work multilaterally to address the global steel overcapacity.”

In addition to Klobuchar, Franken, and Nolan, this letter was signed by Senators Sherrod Brown (D-OH), Bob Casey (D-PA), Joe Donnelly (D-IN), and Joe Manchin (D-WV). It was also signed by Members of the Canadian Parliament.

The full text of the letter is below.

Dear President Obama, Prime Minister Trudeau, and President Nieto:

We are writing to you as members of the U.S. Congressional Steel Caucus and the Canadian House of Commons Steel Caucus to urge you to address Chinese steel overcapacity and steel, and aluminum dumping during the upcoming North American Leaders’ Summit.

The U.S. Department of Commerce and relevant Canadian departments and agencies have been working to combat unfair and illegal trade practices by foreign steel companies. Countries like China, Taiwan, Brazil, Japan and South Korea are dumping hot-rolled, cold-rolled and corrosion-resistant steel into the United States and Canada. In addition to flooding our markets with inexpensive steel, some Chinese steel companies have been accused of a conspiracy to fix prices and control output and export volumes, which is illegal, and of attempting to circumvent hard-won duties through false labeling and trans-shipments. Steel and aluminum produced with these unfair trade practices has had profound and harmful impacts on the economic and national security interests of our two countries.

Our steel industries are facing billions in losses. Thousands of miners and steelworkers have been laid off, and have been left wondering how they are going to make ends meet. When foreign producers dump steel into our countries, they deprive our own domestic steel industries of the benefits of both current and future growth. Unfairly priced foreign steel displaces steel from domestic producers that employ Canadian and American workers. Of course, it isn’t only the workers who make steel who are adversely affected. Businesses in our mining communities are also harmed.

In the United States, the steel industry supports one million U.S. jobs. Due to the recent downturn in steel production in the United States, more than 13,600 hardworking Americans have been laid off. In Canada, employment in the iron and steel mills, and in steel manufacturing from purchased steel, totals nearly 20,000 people, but – like the United States – this number is falling. In both countries, with the direct employment losses come other job losses because of the indirect economic impact of steel operations. Far too many of our citizens are losing their livelihood.

Much of the current crisis is the result of Chinese steel overcapacity. In addition to harming our domestic steel producers, which follow strict environmental laws, negative environmental impacts are occurring because countries like China rely on inexpensive, sinter feed iron ore that  significantly damages air quality and contributes to global greenhouse gas pollution. In order to protect our countries’ economic wellbeing and the environment, it is vital that the United States and Canada address unfair steel dumping on a priority basis, and work multilaterally to address the global steel overcapacity.

We commend you for the steps that you have taken thus far to address what is truly a crisis for thousands of steel and related workers, many steel companies, and communities across our countries. We strongly encourage you to discuss ways in which our countries can effectively work together bilaterally and multilaterally to address the issues of unprecedented global steel overcapacity and unfair trade practices. 

###