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AISI Raises Competitiveness Concerns to Senate Committee
11/15/2007 - In testimony during a legislative hearing of America’s Climate Security Act of 2007 (S. 2191), AISI President and CEO Andrew G. Sharkey states that any climate change provisions must apply to foreign firms selling in the U.S. market in order to avoid dire consequences for the U.S. economy and the environment.
In testimony before the Senate Committee on Environment and Public Works during a legislative hearing of America’s Climate Security Act of 2007 (S. 2191), American Iron and Steel Institute (AISI) President and CEO Andrew G. Sharkey III said that any climate change provisions must apply to foreign firms selling in the U.S. market in order to avoid dire consequences for the U.S. economy and the environment.
In his testimony, Sharkey noted the American steel industry’s global environmental leadership in recycling and carbon emissions reduction. “The domestic industry is the most energy efficient in the world. Largely through recycling and investments in new technology, it has reduced energy use per ton of steel shipped by over 40 percent over the past 25 years,” said Sharkey. “Reductions in carbon emissions per ton of steel shipped between 1990 and 2006 exceeded 29%.”
“However,” he said, “if climate change legislation fails to address the competitiveness issues vis-à-vis foreign products, it will have devastating consequences not only for the U.S. economy, but also for the environment. Not only will we export American jobs, greenhouse gas emissions will rise,” added Sharkey.
AISI and its member companies believe that any competitiveness provision should:
1) Apply simultaneously to domestic and foreign firms selling in the U.S. market
2) Use the same baseline periods
3) Not invite subsidies by foreign governments
4) Not enable the Administration to waive the requirements on foreign manufacturers
Even with the great environmental accomplishments highlighted, Sharkey said the industry is not standing still. In fact, the U.S. steel industry has embarked on aggressive research and development programs in order to develop the next generation of iron and steelmaking technologies—technologies that could drastically reduce or eliminate CO2 emissions.
Sharkey noted the impact that climate-change legislation would have on U.S. workers and manufacturers, if it is not approached in global terms. For example, since the year 2000, the U.S. has lost 3.5 million jobs—a statistic that will only grow if steel production and other manufacturing industries are encouraged to leave this market in favor of markets with lower environmental standards, such as China. Not only will this result in jobs and production moving offshore, but would likely result in higher total volumes of greenhouse gas emissions worldwide.
Sharkey concluded that AISI and the domestic steel industry want to work with the Committee to find reasonable and effective policies. It is through this collaboration that the U.S. will be able to find prudent means of addressing climate change that would allow the U.S. manufacturing base to remain viable and globally competitive.
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 31 member companies and 130 associate and affiliate members who are suppliers to or customers of the steel industry.
