WASHINGTON -- Congressman Tom Petri testified in support of outboard motor manufacturer Mercury Marine this morning at a U.S. International Trade Commission (ITC) hearing in Washington. The Fond du Lac company contends that Japanese outboard engines are being dumped on the U.S. market in order to increase market share at the expense of Mercury Marine's newest product, an innovative engine which took five years and $100 million to develop.

"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," Petri said.

In August the U.S. Commerce Department determined that dumping has occurred, and set a conditional duty of 22.5%. The Commerce Department will make its final determination on December 24.

Rep. Tom Petri gives his testimony at a hearing before the International Trade Commission in Washington, D.C. Petri testified in support of Mercury Marine of Fond du Lac, WI.

The implementation of the Department's recommended duty is contigent on a positive finding of injury to domestic outboard engine producers by the ITC, which is scheduled to finalize its decision in late January, 2005.

"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," Petri said.

From left to right: Mercury Marine President Patrick Mackey, Rep. Tom Petri, President of Local 1947 of the International Association of Machinists and Aerospace Workers Gene Herman, and Mercury Marine General Counsel Joseph Pomeroy.

Mr. Chairman and members of the Commission,

I am pleased to have this opportunity to testify at today's hearing and speak on behalf of Mercury Marine and its 3,400 employees in Wisconsin about the danger posed to the domestic outboard engine industry by the dumping of imported engines from Japan.

This case is important to me and to the other residents of the central Wisconsin district I represent which is home to Mercury Marine's headquarters in Fond du Lac where most of these 3,400 workers are engaged in the production of outboard engines. The company competes in an industry with heavy competition from foreign manufacturers and has worked hard to produce engines that can stand the heat of global competition.

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.

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.