December 1, 2003

The Honorable George W. Bush

President of the United States

The White House

Washington, DC 20500

Dear Mr. President:

The steel tariffs in place since March 2002 are working. On behalf of the thirteen million working men and women of the AFL-CIO, I urge you not to phase out or prematurely eliminate them prior to the completion of the three-year program.

A report issued by the International Trade Commission in September validates the effectiveness of the tariffs. Bankruptcies and layoffs in the domestic steel industry have slowed. Steel prices have stabilized and many domestic producers are returning to profitability. The steel industry is in the midst of a major consolidation and restructuring. Labor unions and steel companies have negotiated agreements to reduce costs, improve productivity and profitability, and help facilitate industry consolidation. The costs to steel consumers have been largely negligible. Steelworkers and steel companies are doing what you asked them to do in 2002—make painful decisions to increase their competitiveness. Now is not the time to pull the rug from under their feet, setting back these efforts that have so far been successful.

Bowing to international pressure from the World Trade Organization, the European Union, and Japan to end the tariffs would send a disturbing signal that the United States is unwilling to defend its domestic workers and industries besieged by heavily subsidized foreign competitors. America’s working families are fighting for their economic survival. Manufacturing employment is at its lowest point in over forty years. 

I urge you not to alter the steel tariffs. Doing so would only hinder the recovery of the steel industry which is so vital to our economic future and our national security.

                                                    Sincerely,

                                                    John J. Sweeney

                                                    President

Contact Guillermo Meneses 202-637-5018