The Herald, Sharon, PA Published Saturday, March 29, 2003


English looks to overturn tariff ruling

By Michael Roknick
Herald Business Editor

A World Trade Organization panel decision earlier this week that called American tariffs on imported steel products illegal must be fought, said U.S. Rep. Phil English.

"If it's not overturned, I think there will be an uprising in Congress and I'll be a part of it,'' English said.

The 3rd District congressman from Erie visited Wheatland Tube Co.'s offices on Friday and held a news conference decrying the decision by the WTO dispute settlement panel. One of the duties of the international agency is to resolve trade disputes between nations.

A year ago, the Bush administration enacted tariffs of up to 30 percent on steel and other related products to stem the tide of growing imports. Action was taken after more than 30 American steelmakers were mired in bankruptcy due in large part to a glut of steel, which depressed prices. The tariffs are set to expire in two years. WTO allows tariffs if a nation shows it's the victim of unfair trading practices by other nations.

Imported pipe and tube products that compete with Wheatland Tube products got a 15 percent tariff in the first year, 12 percent in the second and 9 percent in the third.

Even with the tariffs, imported pipe and tube products accounted for 56 percent of the American market, said Bill Kerins, vice president of operations for Wheatland Tube.

English, chairman of the steel caucus, said the WTO is trying to change the rules arbitrarily.

"We have a right to defend our way of life,'' he said. "They can't change the rules in mid-game.''

Since tariffs were imposed, steel prices have stabilized, allowing American companies to restructure.

"Many of the steel companies in western Pennsylvania have had to lay off workers and close their doors,'' English said. "This safeguard is critical for the remaining companies to stay open and keep our steelworkers employed.''

English said he would work with others in Congress to overturn the WTO decision.

He acknowledged, though, that it's difficult to compete with nations where employment costs are a fraction of those in America.

"I'm not ready to throw in the towel,'' he added.

Werner Co. said low foreign employee costs were a major factor in the company's decision Thursday to close the ladder line at its Sugar Grove Township plant; the line will be moved to its other plants in the United States which have lower costs. The closure means the loss of 500 local jobs.

English said his office offered to do what it could to save the jobs, but the company was the one with the final decision. He pledged to help displaced Werner workers by seeking funds for job retraining.

Separately, English said he wanted American steel products to be given priority in the rebuilding of Iraq once the war is won.

"American taxpayers will be paying for rebuilding that nation and our products should be given the highest priority,'' he said.



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