Read
Senator Wyden's Statement Regarding
U.S. Department of Commerce Tariff Determination for Hynix
Statement of Senator Ron Wyden Before the United States International
Trade Commission
Investigation of Drams and Dram Modules
From Korea
June 24, 2003
Thank you very much, Madam Chairperson. I am Ron Wyden, United
States Senator from Oregon. I appreciate the opportunity to come
before you and your colleagues today to express my concerns about
this investigation and its potential impact on workers in my home
State of Oregon.
I respect and have complete confidence in the Commission’s
ability and commitment to evaluate all the facts in this case, to
understand the complexities of the global and domestic DRAM markets,
and to reach an objective, independent decision. I also believe
that you, some of whom are former Senate staff, understand my duty
to represent the interests of the people of Oregon.
Unemployment in Oregon rose again in May to 8.2%, which once again
gives Oregon the unwelcome position as the state with the highest
unemployment in the country. Oregon is in the third year of economic
meltdown, and has become ground zero for economic hurt. The budget
crisis in my state is the worst since the Great Depression. 12,400
jobs have been lost in the past year alone.
Oregon’s economic recovery is my top priority. Every job that
can be retained, and every new job that can be created take on greater
significance against this bleak economic backdrop. Hynix has made
a massive investment in a DRAM fabrication facility in Eugene, Oregon.
That facility represents an investment of hundreds of millions of
dollars. It employs more than 1,000 people, many in highly-skilled,
well-paid jobs, and as such is one of the largest private employers
in the state. The jobs at this facility offer a bright light amidst
a shadow-filled economy.
That is why the Commission’s determination in this case is
of the utmost importance to me.
The Commissioners who are familiar with my 21-year voting record
in Congress know that I am a dedicated free trader. I chaired the
House Export Task Force for many years, and have served on the Seanate
Commerce Committee since I was first elected. I understand the importance
of open trade for job creation and for consumers. I also know that
some companies believe they can grow their bottom line faster through
litigation than competition, and I am afraid that this is the case
here. Rather than acknowledge that low prices and oversupply have
hurt them, Hynix’s competitors would rather pursue a trade
case in the vain hope of eliminating Hynix as a competitor.
It is no secret that the global semiconductor industry, and in particular
the DRAM industry, has been in slump for a number of years. This
is the result of a dramatic decline in the demand for semiconductors,
and has adversely affected every manufacturer, some worse than others.
This is a global problem. This industry historically experiences
boom-bust cycles, in which the fortunes of ALL DRAM manufacturers
rise and fall together. As your examination of the semiconductor
industry will show, the current situation is no different, except
that it lasted longer and been more severe than in the past.
The key question the International Trade Commission must answer
is whether the DRAM industry in the United States has been materially
injured or threatened with material injury by Hynix’s exports
to the United States. In fact, during the overall period you are
investigating, Hynix’s exports to the United States actually
fell. The major reason for this is that production from the Eugene
plant (which is not a factor in the determination) was increased
as the result of a 2001-2 retooling so Hynix could better serve
its U.S. customers from its U.S. facility. It is true that during
the retooling of the Eugene plant exports temporarily went up to
replace lost production from the Eugene facility, but they fell
again once the plant reopened. Because the volume of imports is
one of the key factors in your injury determination, I think the
fact that exports fell during the period under investigation is
very telling.
The Eugene facility is an integral part of Hynix’s global
operations, and whatever determination the Commission reaches will
affect the Eugene plant and its 1,000 workers. Those of you who
helped write some of the key provisions of U.S. trade law know that
the goal is to create fair competition for American workers and
U.S. products. Trade law is not intended to serve as a curtain behind
which less competitive companies could hide until the global market
for semiconductors comes back around.
I believe this Commission will reach a fair and just decision that
fully considers the depressed state of the world semiconductor market
and the decline in Hynix exports to the U.S. during the period in
question. In your deliberations, I would also urge the Commissioners
to weigh the effect your decision will have on workers in Oregon.
Thank you again for hearing my views.
|