WASHINGTON – Rep. Benjamin L. Cardin has introduced bipartisan legislation to strengthen antidumping and countervailing duty laws to help U.S. companies combat unfair trading practices from foreign competitors. The Trade Law Reform Act , HR 2365, provides "safeguard" remedies to help U.S. industries -- particularly the steel industry -- deal with high levels of foreign imports.

"The global overcapacity of steel has lead to a serious dumping problem that is not in the best interests of our country. It’s painfully obvious that we must strengthen our trade laws to protect American industry and workers," said Rep. Cardin, who represents many of the workers at the International Steel Group’s (ISG) Sparrows Point, MD, plant.

Since 1997, a flood of foreign steel imports have devastated the U.S. steel industry, plunging 35 American steel companies into bankruptcy. In 2001, Bethlehem Steel Corp. filed for bankruptcy and in early 2003 ISG purchased the company.

In December 2001, the International Trade Commission (ITC) recommended that a strong penalty be imposed on steel imports. In March 2002, President Bush invoked Section 201 tariffs against the unfair trading practices of foreign steel producers that have harmed the U.S. steel industry. Since the imposition of the Section 201 remedy, the U.S. steel industry has begun to consolidate so it can better compete with foreign competitors. The purchase of Bethlehem Steel Corp. earlier this year is part of the consolidation process.

The legislation consists of four parts. The first would make it easier for U.S. industries to prove injury and deal with damaging import surges. The second would amend the antidumping and countervailing duty laws to make it easier for U.S. manufacturers and farmers to secure relief from unfairly traded and subsidized imports, and the third would establish a steel importation notification program that would expedite the collection, analysis and release of critical import data. All these changes would be World Trade Organization (WTO) compliant. The fourth would create a WTO Review Commission, by which the United States can review adverse WTO decisions and determine whether such decisions were made consistent with the rules and obligations of the WTO.

Rep. Cardin criticized last Friday’s WTO panel ruling against the Section 201 tariff measures. "This WTO decision is yet another example of a disturbing pattern of WTO panels systematically ruling against trade remedies. The President’s Section 201 relief fully complies with WTO rules, and I am pleased that our legislation creates a commission that will shine a spotlight on these erroneous decisions by the WTO," said Rep. Cardin.

The other sponsors of the Trade Law Reform Act include Reps. Phil English, R-PA, Sander Levin, D-MI and Amo Houghton, R-NY. Rep. Cardin also has co-sponsored the Health Care Tax Credit Enhancement and Steel Security Act, which builds on the 2002 Trade Adjustment Act to help steel retirees purchase health insurance.