President Bush must act to protect U.S. pipemakers
Before the new year dawns, President Bush must make a decision on a recommendation by the International Trade Commission that a quota of 180,000 tons a year be placed on welded nonalloy steel pipe from China.
The ITC recommendation gives the president an opportunity -- rather, yet another opportunity -- to take the side of Chinese pipemakers or American pipemakers. Twice before, President Bush ignored ITC recommendations and chose to side with China.
The ITC recommendation is a reasonable one. It is based on an average of China's pipe exports to the United States in 2000 and 2001. It recognizes that unless China is constrained, it has shown itself willing and eager to devour ever-larger portions of the U.S. market.
Shrinking market
Between January and June of 2004, U.S. producers of the pipe products involved had 62 percent of the U.S. Market. That percentage fell to 51.6 percent from January to June of 2005. China gobbled up a large share of that deficit.
As we said in September, before the ITC issued its report finding that China's rapidly increasing exports to the United States were disrupting the marketplace, this is an issue of importance to the Mahoning and Shenango valleys. China's attack on a specific market -- standard pipe such as is used in plumbing, sprinkler systems and for fence posts -- affects local producers such as Wheatland Tube, with plants in Wheatland, Sharon and Warren, and Sharon Tube Co. in Niles. It also has an impact on the producers of flat-rolled steel used to make the pipe, such as WCI Steel Inc. in Warren.
President Bush must respond to the ITC recommendation by Dec. 31. Every member of Ohio's and Pennsylvania's congressional delegations should let the president know that it is past time for the administration to defend the interests of American producers and workers over those of China.
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