Features

Finance committee chairman pushes Bush to protect lumber, steel industries

By Katherine Pfleger The Associated Press
Thursday February 14, 2002

WASHINGTON — Senate Finance Committee Chairman Max Baucus told the Bush administration Wednesday that congressional support for its trade policy could melt away if it fails to protect the U.S. lumber and steel industries from cheap imports. 

“It is clear that in both of these areas — lumber and steel — other countries are simply taking advantage of us,” Baucus, D-Mont., said at a Finance Committee hearing. 

The administration has been negotiating with foreign governments to try and stop cheap lumber and steel products from being dumped in the U.S. market. Grant Aldonas, Commerce Department undersecretary for international trade, assured the committee that the administration is working diligently to make certain trade laws are obeyed. 

On March 21, the U.S. government is expected to wrap up its investigation into Canada’s alleged unfair export of softwood lumber, which is commonly used in home-construction. The Commerce Department could issue duties in May. 

The U.S. industry has accused its northern neighbors of dumping cheap wood and taking advantage of unfair government timber subsides — accusations the Canadians deny. 

As the March deadline looms, Aldonas said the administration is sending a delegation to Ottawa next week to continue talks with Canadian officials. 

“We are going to make progress on doing something fundamental,” Aldonas said after the hearing. “We recognize the deadline. The question is: can we push ahead?” 

Both the lumber and steel industries have gotten the ear of Congress members who want to make sure constituents in their states aren’t hurt by how the administration negotiates the trade disputes. 

The United States is in talks with foreign governments, including Japan and China, about their steel trade. Separately, President Bush could decide in March to use tariffs or other measures to curb imports. 

Aldonas said the talks alone don’t suggest that other countries are fairly going to shoulder the world’s burden of excess steel. “The real question is: Are other countries going to belly up to the bar and share their fair share?” 

Baucus said the situation isn’t “rocket science.” 

“It is government policy in every government to have a strong steel industry,” he said. “It’s machismo,” which creates an excess capacity on the market.