Washington, D.C. – Congressional Steel Caucus Chairman Tim Murphy (PA-18) and Vice Chairman Pete Visclosky (IN-01) yesterday convened a congressional hearing focused on the challenges steelmakers are facing to grow and create jobs in a global economy where foreign competitors routinely violate international trade agreements.

Top industry executives testified before 16 Republican and Democratic lawmakers about the significant challenges facing American steelmakers. Foreign nations routinely violate trade agreements; energy and raw material costs are higher in part to costly new regulations from the Environmental Protection Agency; and changes to the corporate tax code could result in a $48 billion tax hike for American manufacturers.

“While the American steel industry stands at the forefront of quality, productivity, and environmental protection, the future of steel jobs in the USA are at risk,” said Rep. Murphy, who has led Caucus efforts to hold trading partners accountable and support domestic job growth in steelmaking.

“Integrated steel producers anxiously await a massive new ‘global warming’ rule from the EPA. Other costly and unworkable new EPA regulations like the cross-state air pollution rule and air toxics rule will mean less coal-fired power, potential blackouts, and higher electric rates for mini-mills.”

Upper St. Clair resident and US Steel CEO John Surma testified that the industry was growing and expanding due in part to expanded use of natural gas, and policies advanced by the Steel Caucus to support a level global playing field. Last month, members of the Caucus overwhelmingly supported legislation (H.R. 4105), which was signed into law, penalizing goods from China and other non-market countries where exporters receive hefty government subsidies.

Other witnesses testified that foreign nations violate international trade agreements meant to ensure companies compete fairly in a free market. Richard Teets, CEO of Steel Dynamics in Indiana, and Scott Barnes, vice president of TMK IPSCO, which has plants in Ambridge and Beaver Falls, Pennsylvania, both noted that 95% of the Chinese steel industry is state-owned or controlled, enabling Chinese competitors to benefit from government subsidies like free land and below-market borrowing rates. Nucor CEO Dan DiMicco testified that American producers are automatically at a 40 percent price disadvantage because China deliberately devalues and weakens its own currency to support exports.

To hold China accountable for breaking trade laws and illegally subsidizing its exporters, Murphy said Congress should enact his Currency Reform for Fair Trade Act (H.R. 639).

“China’s policies are specifically designed to undermine American steelmaking and our industrial defense base. For reasons of both national and economic security, we simply cannot allow American steelmaking and manufacturing to be hollowed out by a communist nation that not only breaks international agreements, but knowingly allows unstable and dangerous regimes in Iran and North Korea to sow the seeds of conflict,” he said.

ArcelorMittal CEO Michael Rippey praised Rep. Murphy’s Infrastructure Jobs and Energy Independence Act (H.R. 1861), which would dedicate new federal revenues from expanded offshore oil and gas production toward fixing America’s infrastructure, which the American Society of Civil Engineers estimates would cost $2.2 trillion. Joseph Carrabba, chairman of Cliffs Natural Resources asked lawmakers to be careful that corporate tax reform does not benefit Wall Street and retailers at the expense of heavy manufacturing.