Metalcasters storm Capitol Hill to detail Section 332 results to Congress.

On Sept. 21, 15 metalcasters representing 11 key metalcasting states participated in 25 meetings with U.S. Congresspersons and their representatives (as well as the U.S. Dept. of Commerce) to disseminate the information detailed in the U.S. International Trade Commission (ITC) Section 332 report. This report, "Publication 3771 Foundry Products: Competitive Conditions in the U.S. Market," was generated after a one-year study by the ITC to determine the competitive conditions lacing the U.S. metalcasting industry.

In its study, the ITC questioned 1,250 U.S. casting producers, 1,600 U.S. casting buyers, and seven foreign casting-producing nations and their suppliers. The information generated by the study's interviews and surveys painted the financial picture of the U.S. industry from 1999-2003 as well as the competitive and financial situation of our main foreign competitors.

A sample of the findings from the report are:

* during the time period studied, 80% of metalcasters were forced to reduce or suppress prices to retain customers;

* during the time period studied, the number of metalcasters reporting operating losses increased from 21% in 1999 to 38% in 2003;

* the Chinese government aids its industry through investment and tax incentives, special tax exemptions and regional development aid;

* the Indian metalcasting industry benefits from support by its government, including tax deductions for research and development expenditures, government loans, loan guarantees and tax write-offs.

For more information on the results detailed in the Section 332 report, see p. 18.

The goal of the visits with members of Congress was to present the facts of this report and ask for their support on a number of measures that could assist U.S. metalcasters. The request for assistance centered around Section 421 of the Trade Act of 1974, which is a trade statute that applies to imports from China that are a "substantial cause" of "serious injury" to American producers.

"We must have the strength to survive against China," said Jim Keller, EBAA Iron Sales Inc., to the U.S. Dept. of Commerce. "While we have to invest in our operations and automate, we continue to see Chinese products entering our markets at prices 20-30% less than ours regardless of how efficient we become."

Section 421 was added to the trade act in 2000 to help pave the way to China's ascension to the World Trade Organization and was meant to loosen the normal U.S. "safeguard" law (Section 201) against foreign competition dumping product into the U.S. The first time Section 421 was tested was in 2003, but thus far, no trade sanctions have been applied against China under the ruling of Section 421.

"Globalization has to be a two-way street," said Jim LaJeunesse, Bronze Craft Corp., during his meeting with Rep. Charles Bass (R-N.H.). "There should be free trade, but we don't have that. It is tilted toward China and other low-cost nations. There is relief under the Section 421, but every case that has been put forth has been shot down by the Administration."