Senators back area in fight against subsidized imports

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By Steve Bennish, Staff Writer 7:38 PM Wednesday, February 8, 2012

Miami Valley companies and heavy industry throughout Ohio need a fast legislative fix to a U.S. Appeals Court ruling that hamstrings the ability to fight back against subsidized imports, said Sens. Sherrod Brown, a Democrat, and Rob Portman, a Republican, in a message Wednesday to their fellow legislators.

In a letter addressed to House Speaker John Boehner, R-West Chester Twp., and Senate Majority Leader Harry Reid, a Democrat from Nevada, Brown and Portman urged them to provide “swift consideration of legislation to allow our government to defend American industries against unfairly subsidized imports.”

The U.S. seeks duties on foreign imports when they’re produced with advantages that domestic products don’t have, such as government subsidies. The imports here are sold so cheaply — sometimes for less than the cost of raw materials — that U.S. corporations can’t compete. Factory closures and lost jobs result.

On Dec. 19, the U.S. Court of Appeals for the Federal Circuit ruled the Commerce Department does not have the legal authority to impose duties on government-subsidized imports from nations like China and Vietnam, which don’t have market economies.

“Should this ruling become final, it will have severe economic and employment effects for thousands of workers employed by more than 80 companies in as many as 38 states. This includes more than a dozen Ohio companies in industries as diverse as paper, steel, tires, aluminum, and magnets who would be adversely impacted by this ruling if prompt action is not taken,” the senators said.

Since China joined the World Trade Organization, companies that have been impacted by trade abuse include Jackson Tube in Miami County; Appleton Papers, Inc., Hayes Lemmerz, and NewPage in Montgomery County; Magnode Corp. and Smart Paper, in Butler County; and Basco and Magnet Technology in Warren County.

In all, the senators said, more than 20 Ohio companies have asked for relief because of subsidized Chinese imports that undermined their businesses.

A spokesman for Portman said legislation is being written in the Senate Finance Committee and the House Ways and Means Committee, but has yet to be introduced.

“Countervailing duties are a critical tool industries have to fight unfair trade and protect jobs. Trade remedies help protect Ohio jobs, manufacturers, and small businesses,” Brown said. Said Portman: “Congress should work to ensure that Ohio workers and families have protection against unfair trade practices from countries such as China.”

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