Mercury's newest product, the Verado, is a high-tech, four-
stroke engine which generates significant power while operating
almost silently. The engine produces low-emissions, offering long-
term compliance with evolving environmental regulations. Mercury
has committed itself to being a world class producer of
outboards, and has spent five years developing the Verado and
invested $100 million in the project. Mercury has been a leader
in the development of technology to produce the lower-emission
engines, and the Verado meets both current environmental
requirements and the more stringent standards which are being
phased-in. This is the type of forward looking innovation that
American manufacturers must pursue to be successful.
Today's global marketplace offers U.S. manufacturers a
daunting challenge, and the manufacturing sector is undergoing a
difficult transition. This has been particularly true in
Wisconsin as many companies strive to produce world class
products. Mercury Marine has established itself as a leader in
this effort and is well positioned to succeed in a business
environment characterized by free trade and open markets.
However, all assumptions about the benefits of free trade and
fair competition are out the window when our trading partners do
not play by the rules.
Mercury filed its petition in this case because it believed
that its Japanese competitors were not playing fair. As this
process has moved forward, the merit of this position has been
established at each level. In February, this Commission
determined unanimously that the record showed reasonable
indications that the domestic outboard engine industry had been
hurt by Japanese dumping. In August, the Commerce Department
also found that Japanese engines had been sold in the U.S. market
at less than fair value and announced a conditional duty of 22.5
percent. This dumping could prove to be particularly harmful to
Mercury because it allows the competition to gain market share
during the transition to a tougher regulatory environment.
Mercury's investment in the Verado project has positioned the
company to prosper under the new rules, and improper dumping has
the potential to undercut this effort.
I have always believed in free trade and have often
supported agreements to keep our markets open in exchange for new
overseas opportunities for U.S. producers. I have great
confidence that our companies can compete with the best in the
world. However, we cannot be foolish enough to think that
pursuing a free and fair trading arena is enough to make it
happen. Markets work best with clearly defined rules, and
governments must respond appropriately when domestic industries
are harmed by competitors who break those rules. Today's hearing
presents such an opportunity. It is important that our laws
prohibiting dumping be enforced and safeguards be put in place to
defend those in harm's way.
This case is about protecting a world class domestic
producer from competitors that are seeking an unfair advantage
through dumping. This company, Mercury Marine, is now threatened
with further injury if not granted final antidumping relief. We
cannot afford to lose more manufacturing jobs to unfair trade.
Therefore, I urge this Commission to listen carefully to today's
testimony and study the record developed by these proceedings.
Having taken these steps, I believe that you will come to the
conclusion that the dumping of imported outboard engines has hurt
the domestic industry and threatens further injury if it is
allowed to continue.
Thank you.
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