The Capitol Line

"China Bills" See Action on Capitol Hill

The House Ways & Means Trade Subcommittee is set to hold a hearing on several "China bills" before the August recess begins. The hearing will address a wide-range of trade-related issues, including currency misalignment, modifications to "zeroing" practices and consideration of the application of countervailing duty (CVD) law to non-market economies (NMEs).

A significant focus will be placed on several very important trade bills backed by AISI and the steel industry. Legislation introduced by Rep's Artur Davis (D-AL)* and Phil English (R-PA)*, entitled the "Non-Market Economy Trade Remedy Act" (H.R.1229), is expected to garner some of this attention, as is Rep. Tim Ryan's (D-OH)* and Duncan Hunter's (R-CA) "Currency Reform For Fair Trade Act" (H.R.2942), and Rep. John Spratt (D-SC), Richard Neil (D-MA), Gresham Barrett (R-SC) and Ralph Regula's "zeroing" and "Bratsk" ruling bill (H.R. 2714).

Trade experts anticipate the House Ways & Means Committee to introduce a broad China bill incorporating many of the key features of the above mentioned legislation later this session.

* Denotes Steel Caucus Member

Senate Also Making Progress on "Currency" Front

The Senate Finance Committee recently held a mark up session on China currency legislation introduced by Senators Max Baucus (D-MT)*, Charles Grassley (R-IA)*, Chuck Schumer (D-NY)* and Lindsey Graham (R-SC)*, entitled the "Currency Exchange Rate Oversight Reform Act of 2007" (S.1607).

In addition, the Senate Banking, Housing and Urban Affairs Committee also expressed interest in moving legislation to address the currency issue, and is now considering mark up of a bill crafted by Senators Chris Dodd (D-CT) and Richard Shelby (R-AL)* called the "Oversight to Protect U.S. Jobs and Combat China Currency Manipulation Act" (S.1610). It is anticipated that this legislation, along with the Baucus/Grassley/Schumer/Graham bill (S.1607) and another alternative effort offered by Senators Debbie Stabenow (D-MI)* and Jim Bunning (R-KY)*, 'The Fair Currency Act," S.796, will likely be merged to form one legislative vehicle that addresses the major features of all three bills (so long as public pressure for Congressional action on China currency issue remains, which is expected).

AISI supports these specific currency efforts, but has offered several recommendations to committee staff to properly strengthen the bills' effectiveness in addressing the misalignment issue. AISI will continue to push lawmakers, and their staffs, to pass a strong China currency bill later this year.

* Denotes Steel Caucus Member

For more information on AISI's "currency" efforts, please visit AISI's Public Policy Web site.

AISI Helps Rally Congressional Support for Continuation of AD/CVD Orders on Hot-Rolled Flat Products from Non-NAFTA Regions

This past month, the Institute helped coordinate an industry-wide effort to encourage Members of Congress (MOCs) to appear before the ITC on July 31st and August 1st, regarding a "Sunset" review on hot-rolled carbon flat steel products from eleven non-NAFTA countries, including China and India.

Various Steel Caucus Members were encouraged to participate in this hearing, with over 25 House and Senate lawmakers agreeing to provide verbal or written testimony in support of the continuation of AD/CVD orders against the listed countries. Notable attendees include: House Steel Caucus Chairman Rep. Pete Visclosky (D-IN)*, House Vice-Chairman Rep. Phil English (R-PA)*, Senate Steel Caucus Chairman Sen. Jay Rockefeller (D-WV)* and Senate Steel Caucus Vice-Chairman Sen. Arlen Specter (R-PA)*.

* Denotes Steel Caucus Member

For more information on AISI's ITC hearing recruitment efforts, please visit AISI's Public Policy Web site.

For more information on the ITC hearing, please visit the U.S. ITC Web site.

House Expected to Take Up Energy-Efficiency Bill Before August Recess

At the end of July, House leadership acknowledged plans to debate a 786-page energy-efficiency bill entitled, "The New Direction for Energy Independence, National Security, and Consumer Protection Act" (H.R. 3221). As drafted, this legislation contains several provisions of concern to the domestic steel industry, including implementation of a "renewable portfolio standard" (RPS) requiring utilities to produce portions of their power via renewable sources, and significant roll-backs in domestic energy supply development originally instituted through the "Energy Policy Act of 2005" (EPACT '05).

AISI is working hard to educate lawmakers regarding the impact of these provisions on domestic steelmaking operations. The institute is also encouraging Producer and Associate Member Companies to contact House leaders and their Congressional delegations (through the AISI Legislative Action Center) and ask that they reconsider the inclusion of such provisions in the final bill.

For more information on AISI's Energy-Efficiency Bill efforts, please visit AISI's Public Policy Web site.

For more information on AISI's Congressional outreach efforts on H.R. 3221, please visit AISI's Public Policy Web site.

Check Out AISI's Public Policy Efforts on the Web

AISI's Public Policy Homepage

AISI's Legislative Action Center

National Journal's Policy Council - AISI Micro-Site Homepage

For more information on these websites, contact Matt Davison.

Jennifer Diggins

Matthew Davison

202.452.7214

202.452.7133

jdiggins@steel.org

mdavison@steel.org