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Guest Commentary: May 8, 2001
Steel Industry in Near-Crisis State
The Honorable Jerry Costello
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America's steel industry is in a near crisis state.
Beginning in 1997, dumped and subsidized steel imports grew dramatically until they reached almost 40 percent of the U.S. steel market. Steel prices rapidly decreased; steel workers were laid off; steel companies filed for bankruptcy. As a result of the weakened steel industry, the level of imports deemed acceptable by the government increased, and recovery has been difficult.
The steel industry needs help. I believe H.R. 808 is a good first step in providing assistance. The Steel Revitalization Act of 2001 provides import relief by imposing 5-year quotas on the importation of steel and iron ore products in the United States. The quotas will return the import market share to the levels prior to 1997. This provision is very similar of H.R. 975, which passed the House with strong support in the previous Congress.
In addition, the legislation will augment the Steel Loan Guarantee Program, which provides guaranteed loans to qualified steel companies. Currently, steel companies are finding it almost impossible to raise capital through other sources, especially due to plummeting stock prices and decreasing demand. The Steel Revitalization Act will expand the program by authorizing $10 billion rather than $1 billion, guaranteeing 95 percent of the loan rather than 80 percent and extending the terms from 5 years to 15. With this expansion, more companies will be able to take advantage of this worthwhile program.
In the congressional district I represent, steel companies like Laclede and Granite City Steel are seriously distressed. Many of my constituents are at risk of losing their jobs. It is of the utmost importance that we in Congress work hard to keep America's steel industry vital.
Note: This column has been adapted from a speech Rep. Costello delivered on the floor of the House, May 7, 2001.
 How to contact Rep. Jerry Costello (D-IL)
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