Testimony by Robert Scott, June 16, 2009
In testimony to the Congressional Steel Caucus, EPI Senior International Economist, Robert E. Scott, makes the case for increased US attention to and enforcement of trade law.
“The U.S. steel industry has experienced the largest output decline in decades and is currently operating at capacity utilization levels of well under 50%. The industry has lost over 50,000 jobs since 2000, which is responsible for the displacement of over 500,000 jobs in manufacturing and other sectors of the economy. The unprecedented expansion of the Chinese steel industry represents a grave threat to the future of the domestic steel industry. This expansion has been supported with vast, illegal subsidies for energy and other key inputs. In addition, China recently restored an export rebate program of 9% for many steel products, another direct and unnecessary subsidy to its exports.”