Foreign countries have continued to flood the U.S. with foreign steel imports in 2017; In fact, since the Section 232 investigation was announced steel imports in the United States have risen twenty-one percent
In a letter to Commerce Secretary Wilbur Ross, the federal lawmakers call on the agency to protect the national security interests of the United States by quickly concluding the Section 232 case and taking action to ensure our nation’s steel industry remains strong
WASHINGTON, DC – U.S. Senator Amy Klobuchar, U.S. Senator Al Franken, and U.S. Representative Rick Nolan have urged the U.S. Commerce Department to promptly conclude its investigation of national security risks posed by foreign steel imports. Foreign countries have continued to flood the U.S. with foreign steel imports in 2017. In fact, since the Section 232 investigation was announced steel imports in the United States have risen twenty-one percent. In a letter to Commerce Secretary Wilbur Ross, the federal lawmakers call on the agency to protect the national security interests of the United States by quickly concluding the Section 232 case and taking action to ensure our nation’s steel industry remains strong.
“We urge you to promptly conclude your investigation of the national security risks posed by foreign steel imports and make recommendations to the President for immediate action. A productive domestic manufacturing base, particularly in iron and steel, is critical to our national security,” the lawmakers wrote. “Earlier this year we were encouraged when you took action to address this problem by announcing a Section 232 investigation on this matter. However, we have since become concerned that the administration's inaction in resolving the investigation is actually making the situation worse.”
The lawmakers continued, “In order to protect the national security interest of the United States, the Department of Commerce should act quickly to conclude the Section 232 case and take action to ensure our nation's steel industry remain strong.”
Klobuchar has been a leader in efforts to fight foreign steel dumping and provide support for U.S. steelworkers and miners affected by layoffs. In April, Klobuchar led a group of steel state senators in urging the President to address Chinese steel dumping and overcapacity during his meeting with Chinese President Xi Jinping. In March, Klobuchar introduced legislation to ensure laid-off workers affected by steel dumping receive the support they deserve. The Workforce Training Enhancement Act would allow the DOL to reimburse states that chose to provide TAA benefits to workers while their petition is pending to receive benefits. Klobuchar has also introduced legislation to crack down on illegal steel dumping by strengthening trade enforcement. Following consistent pressure from her last year, USITC voted to impose penalties on Mexican, Turkish, and Korean companies dumping steel in the U.S. Klobuchar also sent a letter to successfully urge the U.S. Department of Labor to expedite approval of TAA petitions submitted by workers from the affected mining operations. In February 2016, after efforts from Klobuchar, the previous Administration announced new actions to combat steel dumping. The actions included new Customs and Border Patrol personnel to enforce our trade laws, stepped up inspections of steel imports at our ports of entry, and increased personnel at the Commerce Department to help ensure tariffs are enforced against those who dump steel in the U.S. Former President Obama also signed legislation that provides additional tools to more aggressively enforce anti-dumping provisions under existing federal law.
Franken has long fought to combat illegal foreign steel exports to the United States and to ensure that federal infrastructure projects use American iron and steel. Earlier this year, Franken pressed Secretary Ross to complete his investigation, telling him that when foreign steel dumping harms domestic production, our national security is threatened—because U.S. iron and steel isn’t just used for buildings and domestic infrastructure, it’s also needed for military equipment like tanks, aircraft carriers, submarines, and weaponry. Franken has also supported new federal actions to combat trade cheats, and over the past several years, has repeatedly gone to bat for Iron Range workers and businesses. He successfully pushed both the Trump and Obama Administrations to impose penalties on several countries engaged in illegal dumping into the U.S., and in 2015, Franken helped lead efforts to bring former White House Chief of Staff Denis McDonough to the Iron Range to witness firsthand the challenges faced by steelworkers, their families, and communities hit hard by a downturn in the steel industry. In 2014, former President Obama signed a law that included a provision Franken helped author to require water infrastructure projects to use American steel.
Nolan has been a consistent champion for Iron Range iron ore and steel workers and worked to combat the illegal foreign steel dumping that threatens America’s national security. This July, Nolan proposed a bipartisan amendment to the National Defense Authorization Act (NDAA) to reaffirm that a strong domestic iron ore and steel industry is vital to our national security – an amendment which passed the House of Representatives unanimously. Nolan has also continually called on the executive branch to take stronger action to stop the illegal dumping of millions of tons of low-grade, foreign-government-subsidized steel from countries like China. He has repeatedly testified at the International Trade Commission to secure tough tariffs on illegal foreign steel.
The full text of the lawmakers’ letter is below.
Dear Secretary Ross:
We urge you to promptly conclude your investigation of the national security risks posed by foreign steel imports and make recommendations to the President for immediate action. A productive domestic manufacturing base, particularly in iron and steel, is critical to our national security. For example, the successful war effort during World War II depended on the robust iron and steel industry in Milll1esota. In 1945, the United States, led by workers on Minnesota's Iron Range, produced sixty-seven percent of the world's pig iron and seventy-two percent of the world's steel. This enabled the consistent and efficient production of necessary high-quality military systems and equipment for the United States military. We are proud of the role Milll1esota's workers played in willl1ing World War II, and we must ensure these industries continue to have the capacity to produce raw materials that are vital to our national security apparatus.
However, as other countries expand their steel sectors with significant government support, massive global steel surplus has harmed American workers and weakened our critical defense industrial base. The bipartisan U.S.-China Economic and Security Review Commission, which was established by Congress to provide expertise on issues such as this, shares our concern about the risk of a diminished U.S. iron and steel industry. Last year, they reported "rampant overcapacity also poses a national security risk to the United States, as cheap Chinese steel and finished aluminum product imports threaten to hollow out the domestic industries and weaken the national defense industrial base."
Earlier this year we were encouraged when you took action to address this problem by announcing a Section 232 investigation on this matter. However, we have since become concerned that the administration 's inaction in resolving the investigation is actually making the situation worse . As you know, the initial announcement of a Section 232 investigation prompted a flood of steel imports when foreign countries sought to preempt any action taken by the administration to adjust American import policy. In fact, since the Section 232 investigation was announced steel imports in the United States have risen twenty-one percent. This is adding to the pre-existing market surplus that continues to undercut American workers and industry.
In order to protect the national security interests of the United States, the Department of Commerce should act quickly to conclude the Section 232 case and take action to ensure our nation's steel industry remain strong. Thank you for your attention to this matter.
Sincerely,
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