Port Fights to Cancel Steel Trade Restrictions

The Port of Wilmington’s Executive Director, R. Adam McBride joined other Port executives, longshore union officials and leaders from the Delaware River port community in Washington D.C. on Wednesday to urge the Bush Administration’s support for the Free Trade in Steel Coalition (FTSC). The maritime delegation expressed opposition to the International Trade Commission (ITC)’s recommendation to President Bush to impose tariffs and/or quotas on steel products imported into the U.S.

“In our meetings with Ambassador Robert B. Zoellick, United States Trade Representative, Faryar Shirzad, Assistant Secretary of 

Commerce for Import Administration, D. Cameron Findlay, Deputy Secretary of Labor, and Randy Koszner, a member of the Council of Economic advisors, we expressed our serious concerns about the devastating impact the trade restrictions may have on the port, manufacturing, and related industries in the United States”, said Port of Wilmington Executive Director, McBride. In recent years, trade restrictions and non-tariff barriers limiting steel imports to the U.S. have mushroomed, causing a precipitous drop in import steel volumes handled by U.S. ports, including the Port of Wilmington, and threatening waterfront and port-related jobs involved in the steel trade.

On October 22, 2001, the ITC ruled that 16 of 33 domestic steel product lines have suffered serious injury because of a purported surge in imports. The Commission has recommended remedial action to impose restrictive tariffs and/or quotas that would cost as many as 38,800 workers throughout the economy to lose their jobs in order to protect 8,900 steel jobs, or eight times as many jobs lost as protected according to the Consuming Industries Trade Action Coalition (CITAC). 

As a result of the restrictions on steel imports, in the past three years alone, the Port of Wilmington has seen its import steel volumes drop from a high of 316,000 tons in Fiscal Year 1999 to 146,000 tons in FY 2001, which ended June 30^th. This represents a decline of more than 54%.  The decrease in import steel cargoes and ships has had a major impact on port revenues, affecting the Port’s bottom line and contributing to a net loss of $1.6 million in FY 2001 compared to modest net income levels of between $100,000 and $200,000 in recent years.

Other Delaware River and East Coast ports have experienced a similar decline in import steel cargoes and vessels, which has impacted port communities throughout the entire nation.

Steel imports from around the world have been a vital source of port revenues, longshore man-hours and jobs in the greater port community for the past fifteen years. In 1999, steel imports generated more than 100,000 man-hours for Wilmington longshoremen and terminal workers. There were over 300 direct and indirect jobs generated in the port community by the trade in import steel. Those numbers have declined steadily over the past three years as government-imposed restrictions on steel imports have taken effect and seriously impacted this trade. Any new or more severe restrictions could further erode the Port’s steel volumes and result in a continuing loss of port jobs and revenue.

“The Port of Wilmington will continue working closely with Delaware’s Congressional Delegation, the FTSC, and the surrounding ports in the region to cancel the restrictions on steel imports, and to protect Delaware’s port and waterfront jobs involved in the steel trade”, added Mr. McBride.

Founded in 1923, the Port of Wilmington is an important asset for the local and regional economy, generating more than 5,800 jobs and contributing over $22 million in annual tax revenues to State and local government.  The Port is owned and operated by the Diamond State Port Corporation, a corporation of the State of Delaware.  For further information, digital photos, free tours of the Port and free speakers contact:  Vered Nohi-Becker, Marketing Services Manager at the Port of Wilmington @ (302) 472-7819, e-mail: vnbecker@port.state.de.us Home