WASHINGTON – Rep. Benjamin L. Cardin called the President's decision today to impose Section 201 remedies on imported steel an "important first step" in saving the U.S. steel industry, but Congress and the Administration must still address the issue of legacy costs and must carefully monitor developing countries and future surges of steel into the United States. He also noted the tariffs imposed by the Administration will directly affect a significant number of products made at Bethlehem Steel Corp.'s Sparrows Point facility.

    The Congressman, who represents many of the steelworkers who are employed at the Maryland Bethlehem Steel facility, said that while he would have preferred that the Administration impose a 40% tariff on foreign imports, "the President moved in the right direction by imposing a tariff on foreign steel imports," which will provide much-needed relief to the domestic steel industry as it recovers from a glut of dumped foreign steel in the United States. The Congressman, however, expressed concern about some of the exemptions of certain product lines and developing nations from the 201 remedy.

    In December, the International Trade Commission recommended a penalty tariff of 20-40% on steel imports. The steel industry called for tariffs in the 30-50% range to counteract the volume of foreign steel imports that have flooded the U.S. market since 1998.

    In October, Bethlehem Steel Corp. filed for Chapter 11 bankruptcy protection, bringing to 31 the number of U.S. steel companies that have filed for bankruptcy since the beginning of the steel crisis. In December, Bethlehem Steel and U.S. Steel announced that they are in merger talks, but that legacy costs remain a major hurdle.

    In the past, the Congressman has urged that Congress and the President deal with legacy costs and the tremendous losses that plague the industry. "Any restructuring of Bethlehem Steel will require that legacy costs be addressed."

    The Congressman explained that the steel industry has a legitimate claim for seeking governmental action regarding legacy costs because in the 1980s and early 1990s, the United States signed Voluntary Restraint Agreements (VRAs) forcing the U.S. industry to decrease capacity. That led to an increase in the number of retired steelworkers whose pension and health care costs had to picked up by U.S. steel manufacturers. Furthermore, many other nations assume the health care and pension costs of steelworkers, making it "difficult for the United States to compete on a level playing field."

    The Congressman is a co-sponsor of the Steel Revitalization Act, HR 808, which would impose a tax on steel imports and set aside those funds to help cover pension and health care costs for retired steelworkers. The Congressman also is the author of the Trade Law Reform Act, HR 1988, which would strengthen our anti–dumping laws to stop future dumping of foreign steel.