WASHINGTON D.C. – U.S. Senator Mark Pryor (D-AR) today led a bipartisan group of senators in calling on the International Trade Commission (ITC) to prevent foreign subsidies and dumping from harming U.S. steel producers. The steel rebar industry has struggled in recent years to compete against imported rebar from Turkey and Mexico that flood the U.S. market through unfair trade practices. The U.S. rebar industry is a major segment of the U.S. steel industry, employing thousands of workers in Arkansas and several other states. Steel companies have seen demand dip resulting in personnel and pay cuts as a direct result of unfair trade practices by foreign companies. Sen. Pryor called Secretary of Commerce Penny Pritzker last month about this issue and submitted the enclosed letter to the ITC to take into consideration during today’s final hearing on this issue.
Joining Pryor are Senators John Boozman (R-AR), Lindsey Graham (R-SC), Roy Blunt (R-MO), Richard Burr (R-NC), Roger Wicker (R-MS), Jim Inhofe (R-OK), Mitch McConnell (R-KY), Thad Cochran (R-MS), Johnny Isakson (R-GA), Jeff Sessions (R-AL), David Vitter (R-LA), Scott Brown (D-OH), Chuck Schumer (D-NY ), Kirsten Gillibrand (D-NY), Debbie Stabenow (D-MI), Tom Harkin (D-IA), Amy Klobuchar (D-MN), Joe Manchin (D-WV), Kay Hagan (D-NC), Jeff Merkley (D-OR), Cory Booker (D-NJ), Al Franken (D-MN), Dick Durbin (IL), Claire McCaskill (D-MO).
The senators’ full letter to Chairman Broadbent is below:
Dear Chairman Broadbent:
We are writing to express support for the U.S. steel reinforcing bar (“rebar”) producers and their workers, and to encourage the International Trade Commission to ensure that foreign subsidies and dumping are prevented from causing additional injury to an already weakened industry.
As the Commission is aware, rebar is used primarily by the construction industry to strengthen concrete structures and is an essential component of American infrastructure. The domestic industry should be benefitting from the modest recovery in construction demand in the wake of the recession. Instead, the industry has faced a continuous onslaught of unfairly traded imports which has had a negative impact on rebar producers and their families.
Since 2010, these imports have flooded the U.S. market at the direct expense of U.S. producers, who have seen their share of the market drop dramatically. Capacity utilization rates are at historically low levels – near 60 percent – and production levels have yet to recover from the recession. Profitability has collapsed and returns on investment have been inadequate. Indeed, conditions have deteriorated to such an extent that some U.S. producers have been forced to close production, while others have had to lay off workers, slash hours, and cut pay to stay afloat.
The U.S. rebar industry is a major segment of the U.S. steel industry with over seven million tons of production a year. The industry employs thousands of direct rebar workers in several dozen states, and supports tens of thousands of additional jobs throughout the country. These jobs are in jeopardy.
On behalf of the U.S. rebar industry and the workers and their families who depend on the full and fair enforcement of our trade laws for their survival, we urge you to give careful consideration to their arguments regarding investigations involving Turkey and Mexico. It is essential that foreign subsidies and dumping be addressed in order to prevent further harm to the U.S. rebar industry and the unwarranted loss of American jobs.
Thank you in advance for your time and consideration of this critical issue.
