*EPF213 05/09/00
Transcript: Rep. Murtha Calls Administration's Trade Enforcement Weak
(Murtha asks how Administration will deal with China) (750)

The Clinton Administration made a promise of "zero tolerance" when it came to foreign exporters dumping steel into the U.S. market, but the International Trade Commission (ITC) appears to have had a more lenient attitude, according to Representative John Murtha (Democrat of Pennsylvania).

In an extension of remarks in Congress May 8, Murtha said this trend bodes ill for any plan to ensure that China abides by its trade agreements with the United States.

"I can see far greater problems on the horizon -- problems that quite possibly will accompany China's accession to the World Trade Organization (WTO)," Murtha warned.

"Congress has been asked to accept that China's entry into the WTO contains meaningful protections against unfair trade practices by Chinese companies," he noted.

"In light of the ITC's recent failure to correctly apply the U.S. trade laws and to effectively respond to massive foreign unfair trade, I am losing confidence in our ability to counter unfair trade from China and other countries," said Murtha, a leader of the Congressional Steel Caucus.

Following is a transcript of Murtha's remarks from the Congressional Record:

(begin transcript)

CHINA AND THE ITC
HON. JOHN P. MURTHA
(Extension of Remarks - May 08, 2000)

HON. JOHN P. MURTHA
in the House of Representatives
MONDAY, MAY 8, 2000

Mr. MURTHA. Mr. Speaker, I rise today to address a serious rash of problems revolving around the enforcement of our trade laws. This body, in concurrence with the rules of the WTO, has enacted laws to ensure fair and equitable trade for American industry and its workers. Unfortunately, our own International Trade Commission appears to have decided to disregard these laws, as recently demonstrated in its decision regarding the dumping of cold-rolled steel into the United States and its seemingly rubber-stamp approach to Sunset determinations whereby foreign unfair traders can have the offsetting duties -- which were applied only after they were found to be engaged in unfair trade -- erased just by showing up at the ITC and asking.

As troubling as the situation is now, I'm afraid I can see far greater problems on the horizon--problems that quite possibly will accompany China's accession to the WTO. Congress has been asked to accept that China's entry into the WTO contains meaningful protections against unfair trade practices by Chinese companies. In light of the ITC's recent failure to correctly apply the U.S. Trade laws and to effectively respond to massive foreign unfair trade, I am losing confidence in our ability to counter unfair trade from China and other countries.

This matter is deeply troubling to me. The domestic steel industry has suffered through massive dumping of foreign steel in the U.S. market over the last two years. The Administration responded by declaring a policy of `zero tolerance' for unfair trade. The Congress provided the necessary funding to the Commerce Department to investigate this unfair trade and Commerce did its job. It found that, in the case of cold-rolled steel for example, that foreign producers were illegally dumping by as much as 80 percent.

The ITC, however, did not do its job. The ITC determined that dumped steel imports more than doubled during the period of investigation and consistently undersold domestic steel. It also found that, during a period of record demand, the U.S. steel industry experienced significant revenue losses, with several major steel producers even forced into bankruptcy. Nevertheless, the ITC inexplicably determined that this massive dumping of cold-rolled steel was not even a cause of this injury to the domestic industry. Without a determination of injury -- which is irrefutable in these cases -- U.S. industry and its workers have no form of relief and nowhere to turn. As legislators and appropriators, it is our responsibility to reevaluate the ITC and whether it is properly managing its resources and correctly adhering to Congressional intent.

Just last year the Administration committed to `zero tolerance' for unfair trade, yet this commitment apparently doesn't extend to the ITC. I'm tired of promises of `zero tolerance' and think it's time we insist on some action. Before we allow the Administration to sell us an agreement with China that promises to benefit America, let's insist on some proof that promises are sometimes answered.

(end transcript)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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