For Release: September 20, 2001
Contact: David Gillies: 202-225-5661

Costello to ITC: "Flood of Imported Steel Outrageous"

Washington - U.S. Congressman Jerry Costello (D-IL) used strong language in testimony before the International Trade Commission (ITC) today, urging that body to find that the U.S. steel industry has been injured by large amounts of illegally dumped foreign steel. Costello was instrumental in getting President Bush to call for the Section 201 investigation earlier this year.

"I represent the 12th Congressional District of Illinois, which includes Alton, Granite City, and other areas with great steel traditions," Costello said. "Sadly, Alton is no longer a steel town. Laclede Steel announced in July that it will shut its doors permanently, ending an 86-year history in Alton and throwing 550 employees out of work. The impact on the local economy will be severe. Of course, Laclede is not alone. Since 1997, 23 domestic mills have filed for bankruptcy. This trend must not be allowed to continue. The hardworking men and women of the United States and their families cannot bear the price of misguided foreign industrial policies any longer. I urge you to recognize that the domestic steel industry has been injured by the floods of foreign steel that have repeatedly overwhelmed the U.S. market."

Costello explained to the commissioners how foreign overproduction had depressed steel prices and that efficient U.S. producers were bearing the burden. The American steel industry is extremely efficient, requiring only 3.6 man-hours per ton of steel produced.

"It would be tremendously unfair to allow our domestic industry and its workers to fall prey to import surges caused by the foreign excess capacity that so greatly distorts the steel markets worldwide," stated Costello. "The fact that highly efficient private producers -- both in the U.S. and abroad -- are being forced to downsize or even to exit the market by foreign producers who are less efficient is simply outrageous. I therefore urge you to come to the only correct conclusion in these proceedings -- that the domestic producers have been injured by imports -- and to grant the U.S. steel industry the relief that it needs and deserves."

Costello ended his testimony by emphasizing the need for total relief. All product categories covered by the investigation should be included in the ruling:

"Partial relief would only provide a road map for the foreign producers on how to shift from one product category to another in order to ensure continued operations of their redundant capacity....I...would like to impress upon the Commission the importance of maintaining the product categories as presented in order to ensure the effective and comprehensive relief warranted to bring about the necessary structural changes abroad and restore a free and fair market in steel."

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