House Passes Democrat-Led Bill to Limit Steel Imports

The Republican-dominated House approved a rare Democratic-led initiative Wednesday, passing a bill that would slap limits on imports of steel to help the beleaguered U.S. steel industry.

The bill was sent to the Senate despite strong opposition from the House GOP leadership and President Clinton, making its chances of ultimately becoming law slim.

But the measure’s success in the House spotlights a troubled dark spot in the booming U.S. economy and provides a window onto the volatile politics of the closely divided House.

The bill passed by a wide bipartisan margin--289 to 141--reflecting the intense pressure building in the Rust Belt, where thousands of steel workers have lost jobs because of a surge of cheaper imports. And the debate laid bare the divisions within both parties in the House, which Republicans control by only six votes.

The result illustrated the shaky nature of the GOP’s hold on the House agenda, as 91 Republicans defied their leaders to back the bill. It also showcased the deep divisions over trade policy between the Clinton administration and labor-backed rank-and-file Democrats on Capitol Hill.

The bill pitted the vast majority of House Democrats--including Minority Leader Richard A. Gephardt (D-Mo.)--against the White House at a time Vice President Al Gore is trying to consolidate party support for his 2000 presidential bid. Gephardt earlier this week accompanied Gore on a trip to New Hampshire to give him a very public endorsement.

Some Democrats accused the GOP of bringing the steel import bill up for a vote simply to highlight divisions among Democrats while giving Republicans in strong labor districts a risk-free opportunity to cast a pro-union vote.

GOP strategists acknowledged that the face-off had some political fringe benefits, even if it was a defeat for the party’s traditional free-trade policies.

“The reality is, it does put the president in a precarious situation,” said Tony Rudy, an aide to House Majority Whip Tom DeLay (R-Texas).

The House debate underscored the hard times that have hit steel-dependent communities. Over the last year, the U.S. market has been flooded by low-priced steel from economically troubled countries such as Japan, Russia and Brazil. Largely because of the world economic crisis, demand for steel has dropped in these other countries, making the U.S. market even more attractive. When foreign producers sell products here below their costs, the practice is called dumping.

The surge of imports has taken a heavy toll on domestic producers. Over the last year or so, three steel mills have filed for bankruptcy and more than 10,000 workers have lost their jobs.

The bill passed by the House would direct the president to ensure that the volume of steel imports not exceed the average amount imported during the three-month period ending July 1997. The legislation’s proponents said it is needed because Clinton has not moved more aggressively to enforce anti-dumping trade laws.

“I’m concerned that the administration has not done enough to promote a global solution to this problem,” Gephardt said.

Interjecting presidential politics into the discussion, Rep. James A. Traficant Jr. (D-Ohio) urged bill supporters to “take it right out on Al Gore” if Clinton vetoes the measure. “It’s time they get a message from Democrats in Congress,” he added.

But opponents--including the White House--said the bill would violate international trade rules and is unnecessary because of signs that steel imports already are declining. They warned that such protectionist policies would backfire on U.S. industries--especially in export-dependent states such as California--that rely on other countries keeping their markets open.

“In California, our economy hinges on our involvement in the international economy,” said Rep. David Dreier (R-San Dimas). “If we’re to move ahead on this legislation, it could be devastating to the largest state and I believe the entire country.”