PRINTER'S NO. 1857
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE RESOLUTION
No.
365
Session of
2015
INTRODUCED BY BREWSTER, RESCHENTHALER, ARGALL, TEPLITZ,
RAFFERTY, WHITE, VOGEL, YUDICHAK, MENSCH, BARTOLOTTA, FOLMER,
WARD, STEFANO, VULAKOVICH, LEACH AND DINNIMAN, MAY 26, 2016
REFERRED TO INTERGOVERNMENTAL OPERATIONS, MAY 26, 2016
A RESOLUTION
Urging the President of the United States and Pennsylvania's
elected Federal officials, including United States Senators
and United States Representatives to fight for strong
enforcement of our nation's trade laws to level the playing
field with China and other countries, taking necessary action
to protect the domestic steel industry from unfair foreign
competition and urging the United States Department of
Commerce to maintain China's nonmarket economy status to
preserve the ability of United States companies and American
workers to access domestic trade remedy laws.
WHEREAS, Manufacturing is a critical part of this
Commonwealth's economy, providing 569,600 jobs; and
WHEREAS, The number of manufacturing jobs declined in this
Commonwealth over the last year; and
WHEREAS, Only 30,000 manufacturing jobs were created
nationwide in 2015, compared to 2.7 million jobs created across
the entire economy; and
WHEREAS, Manufacturing industrial sectors are at risk of
sliding back into recession due to an alarming surge of unfairly
priced imports from China and other nations; and
WHEREAS, The United States trade deficit with China set a new
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record in 2015 at $366 billion; and
WHEREAS, The Institute for Supply Management's manufacturing
index shows that the sector contracted in February 2016 for the
fifth consecutive month; and
WHEREAS, The steel industry, in particular, is suffering from
an unprecedented surge in imports into the United States from
nations such as Brazil, China, India, Russia, South Korea,
Turkey and Vietnam; and
WHEREAS, Steel is used in a broad range of applications,
including the following: automobiles, energy production and
transmission, transportation infrastructure, including bridges,
highways, airports and railroads, public safety infrastructure,
such as water treatment, construction of hospitals, schools,
industrial plants and commercial buildings and national
security, including aircraft carriers, nuclear submarines, tanks
and armored transports; and
WHEREAS, The steel sector is an engine for good-paying jobs
for more than 1 million Americans, supporting approximately
136,000 jobs in this Commonwealth according to the American Iron
and Steel Institute; and
WHEREAS, Every steel industry job supports up to five
additional jobs in this Commonwealth's economy and provides
family-sustaining jobs; and
WHEREAS, Major steel mills were recently closed or idled in
this Commonwealth and across the United States; and
WHEREAS, Finished steel imports increased by a dramatic 36%
in 2014 and set an all-time record; and
WHEREAS, Finished steel imports captured 29% of the United
States market in 2015, the second consecutive year that figure
was at an all-time record, up from just 23% in 2013; and
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WHEREAS, Domestic steel shipments declined by over 12% in
2015 and plant activity averaged just 70% for 2015, well below
profitable levels; and
WHEREAS, Multiple steel-producing countries are taking nearly
one-third of the domestic market, which harms families and
communities and is a threat to our national economic security;
and
WHEREAS, A major cause of the steel import surge is global
steel industry overcapacity, a measure of excess production
capacity above what is necessary to meet market demand; and
WHEREAS, China's steel industry, which now represents half of
all global steel production, is almost completely subsidized,
owned and state-supported by China's central and provincial
governments, with 9 out of its top 10 producers being state
owned; and
WHEREAS, China continues to overproduce steel with the
backing of aggressive government support and trade policies that
are resulting in Chinese exports flooding every market around
the world, creating a domino effect on trade flows; and
WHEREAS, Chinese crude steel production soared from 128
million metric tons in 2000 to 823 million metric tons in 2014,
an increase of nearly 700 million tons; and
WHEREAS, The Organization for Economic Cooperation and
Development estimates that there is approximately 700 million
metric tons of excess steel capacity globally today; and
WHEREAS, Much of the world's steel ends up in the United
States because we have the most open market in the world and
because other countries are more aggressive in putting
safeguards and tariffs in place; therefore be it
RESOLVED, That the Senate of the Commonwealth of Pennsylvania
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urge the President of the United States and Pennsylvania's
elected Federal officials, including United States Senators and
United States Representatives to fight for strong enforcement of
our nation's trade laws to level the playing field with China
and other countries, taking necessary action to protect the
domestic steel industry from unfair foreign competition and
urging the United States Department of Commerce to maintain
China's nonmarket economy status to preserve the ability of
United States companies and American workers to access domestic
trade remedy laws.
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