WEIRTON STEEL ANNOUNCES LATEST CAMPAIGN TO FIGHT IMPORTS

WEIRTON, W.VA. -- Citing the ongoing steel import crisis, Weirton Steel Corp. today unveiled an intense campaign aimed at passing new federal trade legislation.

Richard K. Riederer, Weirton Steel’s chief executive officer, said the company today began heavy lobbying for H.R. 1505, "The Fair Trade Law Enhancement Act."

The measure, introduced by U.S. Reps. Phil English, R-Pa., and Ben Cardin, D-Md., was crafted to change the existing trade laws to benefit not just the steel industry, but all domestic industries.

"The business of world trade has dramatically changed since Congress last updated U.S. trade laws. Our current laws are not capable of responding in a timely and effective manner, in particular, to sudden surges of unfair and illegally traded imports. These surges cause sudden and long-lasting injury to U.S. firms and employees," said Riederer.

Even though Congress does not return to work until after Labor Day, Riederer explained, work to pass the bill already is underway with congressional staffs.

Riederer said H.R. 1505 features 16 "safeguards" which are designed to "tighten up" the laws and to "put more teeth into their enforcement."

The safeguards basically include: making it easier for U.S. industries to prove injury from imports; improving the definition of various types of import activities which would make it easier to administer the law; clarifying the role of governmental agencies in dealing with imports to make their enforcement duties more expedient and effective; and, ensuring the law is consistent with World Trade Organization regulations to avoid legal conflicts resulting in lengthy debates.

The bill also would establish a strict monitoring at U.S. ports to detect import surges and violations. In addition, it would prevent the government from entering into suspension agreements with countries that have violated trade laws without the consent of the majority of the effected U.S. industry.

The agreements suspend the countries from paying hefty duties on their imports as punishment for violating the law in exchange for reducing shipments to the U.S. and set specific prices on the imports sold in American markets.

Riederer said evidence the crisis continues is based on recent legislative activities including the passage of The Emergency Steel, Oil and Gas Loan Guarantee Program, the release of the "White House Steel Action Program" and the introduction of H.R. 1505. He said such actions underscore the fact that the crisis is continuing.

Riederer cited other evidence based on U.S. steel industry data including:

                    • only one-fifth of the 10,000 laid-off steelworkers have had their jobs restored;

• most U.S. steelmakers posted a 1998 to 1999 earnings decline in excess of 100 percent;

• steel prices remain drastically depressed as U.S. producers lowered their prices to try to compete with  the illegally priced imports;

                    • prices on some product lines declined in 1998 by as much as $100 to $150 per ton, and recent moves to restore
                    prices are only at a fraction of that amount;

• U.S. shipments declined 10 percent through the first five months of 1999 compared to the same period in 1998.

"The damaging effects from the crisis are serious and long-term. The most effective and lasting solution is the prompt and strict enforcement of trade laws. We need to pass H.R. 1505 and other constructive proposals to stop the crisis we are in and prevent future ones," Riederer commented.

The bill currently is co-sponsored by 47 House members including several regional delegation representatives who are: Bob Ney, R-Ohio; James Traficant, D-Ohio; and Frank Mascara, D-Pa.