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124470 1 (1984-06-20)

handle is hein.gao/gaobactif0001 and id is 1 raw text is: 


              UNITED STATES GENERAL ACCOUNTING OFFICE
                         WASHINGTON, D.C.



                                         FOR RELEASE ON DELIVERY
                                         EXPECTED AT 10:00 A.M.
                                         JUNE 20, 1984


                           STATEMENT OF

                      ALLAN  I. MENDELOWITZ
              ASSOCIATE DIRECTOR,  NATIONAL SECURITY
              AND  INTERNATIONAL  AFFAIRS DIVISION

                            BEFORE THE

                      SUBCOMMITTEE  ON TRADE                 124470
                HOUSE COMMITTEE ON WAYS  AND MEANS

                               ON

         H.R. 5081, THE FAIR TRADE  IN STEEL ACT OF 1984

Mr. Chairman and Members of  the Subcomittee:

     I am happy  to be here today to discuss H.R.  5081, the Fair

Trade  in Steel Act  of  1984.  H.R.  5081 would  place a  5-year

quota on  imported steel restricting imports to about 15% of  the

apparent domestic  supply of all steel mill products.   In return

for this protection,  the steel industry is required to use  sub-

stantially  all cash flow  from the steel  sector to reinvest  in

and modernize  this sector.   We  understand that  the intent  of

this legislation  is to give the  steel industry a period of  re-

lief during which  time it would seek to regain its  competitive-

ness in the U.S. market.

     The bill  raises a number of  important issues that need  to

be considered.   First, the steel industry is undergoing  consid-

erable change:   modern  steelmaking capacity has  been built  in

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