Tubbs Jones testifies for steel industry before ITC

Today, Congresswoman Stephanie Tubbs Jones (D-OH) testified before the International Trade Commission (ITC) to advocate on behalf of the domestic steel industry and steelworkers.

In her prepared statement, Tubbs Jones said, "I welcome the opportunity to testify today on behalf of the steel producers, steelworkers, and retirees in my district and across the great state of Ohio.

"My constituents, who live in Cleveland and its eastern suburbs, have been some of the hardest hit from the surges of unfairly traded imports that have flooded the U.S. market for over two decades. LTV Steel, a major employer of my constituents, filed for bankruptcy in December of 2000. In June of 2001, it shut down its West Side operations, which primarily produced hot-rolled steel. In December of 2001, LTV ended the remaining of its steelmaking operation. This shutdown resulted in the idling of over 7 million tons of capacity, and put 6,000 people out of work in the Greater Cleveland area. Over 12,000 LTV employees lost their jobs nationwide. LTV's operations remained idle until May of 2002, when ISG re-started steel production and re-hired over 2,000 steelworkers. The hardships faced by LTV steelworkers and retirees due to unfairly traded imports have been tremendous. Unfortunately, LTV was by no means alone, as Bethlehem, National, Acme, and Wheeling Pittsburgh Steel were also forced to file Chapter 11 due to unfairly traded imports.

"A strong domestic steel industry is integral to the well-being of thousands of families in my district and the State of Ohio. Many communities rely on the domestic steel industry to provide jobs for their men and women and maintain a healthy tax-base. Although the domestic steel industry has faced serious challenges in the past, considerable progress has been made. In recent years, domestic producers, and the steelworkers that keep the industry alive, have jumpstarted idled capacity, implemented new technologies, and contributed to the medical needs of retirees.

"Removal of trade remedies at this critical juncture for our domestic hot- rolled steel industry would result in a resurgence of unfairly traded imports. Such increased imports would undermine the ability of our domestic producers to regain their financial viability, expand capital expenditures, and fund the trusts for retiree health benefits. The capital intensive nature of the steel industry means that companies must stay profitable in order to rebuild balance sheets and provide the capital needed to fund the many long-deferred capital expenditures.

"Additionally, the viability of the domestic hot-rolled steel industry is critical to the continued funding of the Voluntary Employee Beneficiary Association (VEBA) trusts. VEBA trusts afford retirees and their families the needed prescription drugs and medical services they earned, but lost, when domestic steel companies went bankrupt.

"The outcome of this case is of the utmost importance to my district and Ohio. My constituents have experienced firsthand the adverse consequences that can befall the steel industry should trade relief be removed. Although time has passed since the original investigation of this matter, Brazil, Japan, and Russia remain dependent on steel exports. If the orders and suspension agreement are removed, the domestic steel industry would be vulnerable to severe material injury caused by dumped and subsidized steel."