Local steel execs push Congress on China trade

Malia Spencer, Reporter - Pittsburgh Business Times

Local executives before members of the Congressional Steel Caucus laid out a laundry list of challenges facing the steel industry and American manufacturing and dealing with Chinese trade practices was once again front and center.

Western Pennsylvania manufacturers have been pushing Congress to act on trade issues, especially with China, and have backed various iterations of legislation aimed at cracking down on China’s currency manipulation. According to the testimony of Dave Frengel, director of government affairs for Penn United Technologies Inc., the Chinese currency is undervalued between 25 percent and 40 percent, making it that much more expensive for U.S. products in that country.

Critics of these currency bills often say such legislation would have the government picking winners and losers, said Republican Rep. Tim Murphy, R-Upper St. Clair, who is also the caucus chair, while asking the panel the best way to boost Congressional support.

Allegheny Technologies Inc. (NYSE: ATI) Chairman, President and CEO Richard Harshman acknowledged that delicate balance but, he said Congress already has the tools necessary to handle these trade issues if it would just enforce the trade laws that are on the books.

What is needed, he said, is enforcement of World Trade Organization rules to which China committed when it entered the organization.

Scott Barnes, vice president and chief commercial officer of pipe and tube maker TMK IPSCO chimed in with, “we are a rulesbased company and a rules-based country. China knew the rules when they signed up.”

Frengel, who has become an outspoken advocate on this issue, and others told the caucus that it isNike Tiempo Legend