Rep. Cardin Points to Beth Steel Bankruptcy Results of Failed U.S. Steel Policy

BALTIMORE – Rep. Benjamin L. Cardin, a congressional leader in the effort to strengthen U.S. trade laws to reduce the number of illegal foreign steel imports that have flooded the U.S. market, said today that Bethlehem Steel Corp.'s decision to seek Chapter 11 protection is a "direct result of our failure to strengthen our trade laws and enforce existing trade laws."

The congressman, who represents many of the workers of Bethlehem Steel's Sparrows Point, Md. facility, has been very critical of the unfair trading practices of many foreign steel manufacturers. "Since 1998, the U.S. steel industry has been besieged by a flood of illegal imports, resulting in enormous losses and bankruptcies. Congress need to take strong steps to protect the U.S. steel industry and its workers," he said.

On Oct. 1, the Congressman urged the International Trade Commission (ITC) to provide relief for U.S. steel manufacturers against foreign competitors who have flooded the U.S. market. "Without relief, the very existence of Bethlehem Steel and other steel manufacturers will be in jeopardy," he said in his ITC testimony.

The ITC has launched a Section 201 investigation into the high level of foreign steel imports and its effect on the U.S. steel industry. The ITC investigation, which President Bush called for in June, could lead to a reduction in the amount of foreign steel allowed into this country.

Rep. Cardin also stressed the need for the United States to maintain a strong and vital steel industry. "It is in our national interest to preserve a strong steel industry, particularly in light of the fact that we are now engaged in a war on terrorism."

The Congressman has introduced the Steel Revitalization Act, HR 808, which would address the glut of illegally dumped imports by setting import levels at the average level of penetration that occurred three years prior to the onset of the steel import crisis in 1998. He also has introduced the Trade Law Reform Act, HR 1988, to strengthen antidumping and countervailing duty laws.