USW Credits Bi-Partisan Congressional Action Ensuring U.S. Can Protect Jobs Against Chinese Subsidized Imports

WASHINGTON, March 6, 2012 /PRNewswire-USNewswire/ -- The United Steelworkers (USW) today credited Congress for rising above partisanship and bickering to ensure that America's trade laws can be used to respond to China's rampant subsidization of its producers when the practice injures U.S. workers and industry.

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"In this difficult time of American election politics, the Chinese leadership should take notice Congress spoke with a united voice in saying that Americans want our laws to be effective in responding to China's predatory and protectionist acts," said Leo W. Gerard, USW International President.

Late last year, a lower court misinterpreted failure of Congress to act on the question of whether countervailing duty law (CVD) – a law designed to respond to unfairly subsidized products shipped to the U.S. market – should apply to non-market economies, like China.  The court's deeply flawed decision interpreted congressional inaction as acceptance of an outdated approach, even though that approach had been subsequently updated by both the Bush and Obama Administrations to clarify that the CVD law should apply to non-market economy countries.

USW President Gerard said: "Luckily, for America's workers and domestic producers, Congress applied a common sense approach in making clear that our countervailing duty law was designed to address China's market-distorting subsidies. The USW is the largest industrial union in North America, and our members stand at ground zero in the trade fight.

"All of the hard-won trade relief against Chinese subsidized imports that had been provided under the CVD law would have been thrown out if the lower court's decision was not addressed.  The jobs of thousands of USW-represented workers were imperiled where duty orders on China's unfair subsidy practices were in place on goods like coated paper, aluminum and pipe."

Once the Congressional-passed bill is signed by President Obama, whose aides have said that he supports the legislation, the 24 countervailing duty orders that could have been eliminated by the court's decision will continue to offset unfairly subsidized imports from China, giving all American workers and domestic producers a level playing field.  Additionally,several on-going investigations by the U.S. will now proceed.

Gerard emphasizes there are many trade issues that remain to be resolved, which are still in need of Congressional and Administration leadership.  China continues to manipulate its currency and trample on the rights of its workers, prohibiting too many from benefitting by the fruits of their labor.  He said China restricts or prohibits outright the export of roughly 200 products in violation of its WTO commitments, while blatantly stealing America's intellectual property.

He declared: "The USW will continue to join the fight to resolve these issues. But today, Congress deserves to be recognized and applauded for the action taken. Hopefully, it is a sign of positive things to come."

A copy of the USW letter sent Mar. 5 to the U.S. House urging a vote in favor of the bill introduced by the Ways and Means Committee that corrects the federal appeals court ruling on the issue is available HERE.

Contact: Gary Hubbard, 778-4384; 202-256-8125; [email protected];
Wayne Ranick, 412-562-2444; 412-901-8442; [email protected]

SOURCE United Steelworkers (USW)