U.S. Rep. Pete Visclosky, D-1st, testified on Tuesday before the International Trade Commission (ITC) on fair trade practices regarding magnesia carbon bricks from China and Mexico.

The current deliberations of the ITC impact workers at Resco Product Inc., which has a plant in Hammond, Indiana.

An excerpt from Visclosky’s testimony.

“I normally stand before you to discuss various types of steel products,” Visclosky said, “but today I am here to discuss a product that allows steel products to be created, and that is magnesia carbon bricks. As you know, these bricks are used in the production of buildings and ladles that come in contact with molten steel and molten slag, which causes them to be replaced often, sometimes every four to 12 days. Therefore, the success of the magnesia carbon bricks industry is intrinsically tied to the success of the steel industry, and our trade laws should be evenly enforced for the success of both industries.

“Now, as the Congressman from the First Congressional District of Indiana, I represent a wide array of steel industry workers, including those from Resco Product, Inc., which has a plant in Hammond, Indiana,” Visclosky said. “These workers are critical components of the success of the steel industry base in Northwest Indiana, and they deserve to compete on a fair playing ground. We must send the message to all of our trading partners, not just China and Mexico, that we will not tolerate illegal trading practices, and that there are harsh consequences for those who do not trade fairly.”

“I am pleased that the preliminary decisions of this case have indicated that there is material injury for the American industry,” Visclosky said. “As you know, in March of this year the Department of Commerce determined that Chinese and Mexican imports of magnesia carbon bricks have been sold at prices less than fair value, ranging at margins from 50 percent to 236 percent. The U.S. market cannot compete against these prices, and as a result the U.S. industry has lost sales, market share, production, and employees. We cannot allow this type of practice to continue when we are working to revitalize our economy.”

“On a final note, today is July 27, 2010,” Visclosky said. “The initial period of review of this case was from 2006 to 2008, and the final investigation under review today runs from 2007 through the first quarter of this year. The trading practices of China and Mexico that we are reviewing today have already been in practice for four years.”

“Over this time, productivity has fallen by at least 9 percent, and at least 30 workers have lost their jobs,” Visclosky concluded. “I am growing increasingly concerned that by the time justice is served the damage will already have been done, and the antidumping duties or countervailing duties will just be a part of our trading partners’ business models.”

Posted 7/28/2010