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HomeMy WebLinkAboutMINUTES - 01261993 - X.2 X. 2 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on January 26, 1993 by the following vote: AYES: Supervisors Powers, Smith, Bishop, McPeak, Torlakson NOES: None ABSENT: None ABSTAIN: None The following item was brought to the attention of the Board Members after the agenda was posted, and the Board unanimously agreed on the need to take action. SUBJECT: Proposed Tariffs on Imported Steel Supervisor Torlakson referred to an anticipated announcement of the Commerce Department to propose duties on imported steel. He expressed concern that the tariffs could have a negative impact on the USS-POSCO joint venture with USX Corporation in Pittsburg. Supervisor Torlakson therefore recommended that the County Administrator write a letter on behalf of the Board of Supervisors to indicate the Board's support of USS-POSCO being exempted from paying duty on the raw steel coming from Korea as a component of the joint venture. Supervisor McPeak spoke on the need to try to prevent dumping of steel on the U. S. market by foreign producers that are then taking jobs away from other Americans. She urged that the distinction. be made on what the tariff ' s are intended to do which is to keep Americans employed and not have dumping of foreign subsidized steel on this market. In referencing the USS-POSCO joint venture, Supervisor McPeak noted that the workers at this plant have a collective bargaining agreement and are paid a fair wage and benefits package that are not a drain on the local community. Therefore, IT IS BY THE BOARD ORDERED that the County Administrator is REQUESTED to write a letter on behalf of the Board of Supervisors to indicate the Board' s support of USS-POSCO being exempted from paying duty on 'imported rolled steel since USS-POSCO, located in Pittsburg, California, is a joint venture with USX Corporation and is a major employer in Contra Costa County. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: 6 ,�y cc: County Administrator PHIL EATCHELOR,4151erk of the Board of Supervisors and County Administrator i:w-o+i: i7 At'«=,1,fit.',;�>':.>.AV_Ah-i �. X. TO: BOARD OF SUPERVISORS Contra ;rr FROM: + SUPERVISOR TOM TORLAKSON -, Costa Count:: DATE: JANUARY 26, 1993 ,►.�` >, SUBJECT: SUPPORT FOR EXEMPTING USS-POSCO FROM PROPOSED TARIFFS ON IMPORTED STEEL SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMUENDED ACTION: In the interest of retaining local jobs, request the County Administrator to write a letter on behalf of the Board of Supervisors to indicate the Board' s support of USS-POSCO being exempted from paying duty on imported rolled steel since USS-POSCO located in Pittsburg is a joint venture with USX Corporation and is a major employer in Contra Costa County. BACKGROUND INFORMATION: On Wednesday, the Commerce Department will announce suggested duties on imported steel. Proposed import steel tariffs could have a negative impact on the USS-POSCO project in Pittsburg. POSCO imports virtually all its raw steel from;: Korea and a tariff could make the raw steel too expensive. USS-POSCO underwent modernization in 1986 and is equipped to process only foreign steel. Many feel that the duties as planned would hurt USS-POSCO by leading to a a partial or total shutdown of the Pittsburg plant if the steel becomes too expensive to process. CONTINUED ON ATTACHMENT: -YES' SIGNATURE: /am To_r�ke S 014- RSCOMMENOATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIONATURElBh ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER < + Y � ■ I�1119+ d i IM,port"tariff. 3 Kiss, of d eath'. g :0. f6,"r * , { By Sam Richards " Start writer POSCO imports. „ 3 t PITTSBURG-— Proposed im- port.steel tariffs could brighten virtually all itsN business for the USS-POSCO. plant here—or shut it down,say raw steel from industry experts.' ii ry Whatever happens, union off►- Korea. At worst rials said they would like to be r kept abreast of the potentially vol- tariffs could atile situation involving the 8 � I charges levied on imported steel, g „ p „ make the steel called dumping duties. No one �,•: 'uil, is doing that now, they,said. V. Company executives "don't too expensive. x � really share with us the informa- tion they receive, or what their plan of attack,is," said Wayne This followed 84 complaints filed Clary, staff representative of the in late June 1992 by U.S. steel S . United Steelworkers of America makers that foreign producers i s �. .• , Local 1440 sub-district No. 3 in were "dumping" this steel in the Concord. U.S., and selling it for lower He said he has heard the execu- prices than domestic makers could i tives say the duties could be the .match. ' , "kiss of death" for the Pittsburg On Wednesday, the commerce plant, -because the high-quality department will announce sug- ' Korean'steel it needs could be- jested duties on imported steel. come too expensive. The suggested amounts will vary ' � a POSCO imports virtually all its according to the kind of sheet . raw steel froin'Korea. At worst, steel and from whiFh country it some'observers'feel, duties'1 and{),,,comes,-'i'said;Larry'Williams, a? tariffs could`make Abe, Korean!""spokesman for USS-POSCO. steel'too expensive.'That could The department's International lead to partial or total shutdown, , Trade Commission is expected to. sale or revamping of the Pittsburg rule in July on the.final duties to plant. be levied. Or, if the International Trade;` Clary,who complained that nei- scam file ph, Commission of the federal Depart-•' ther labor leaders nor rank-and- USS-POSCO's raw Korean steel makes It subject to a new tariff. ment of Commerce finds reason to file union members have been grant exemptions relieving USS- kept abreast of the situation, said about a :shutdown," Gutierrez; "With such a reverse impar POSCO of paying duties on im- labor leaders.should be asked to said. "But everybody's been con- the whole thing could end up t ported rolled steel, business'as help convince regulators that cerned about the economy, any- ing more expensive for us," s usual could continue: Business USS-POSCO deserves anexemp- way," Kirkland. "In these trade wai might`even get better for SS tion from the tariff. Clary said USS-POSCO is re- you just don't know." POSCO"with more level mes- "It always has more impact if nowned for the high-quality steel USS-POSCO is a joint subs tic playi#g field, some sa :' (the decision makers) hear from it both buys and further process- iary of USX Corp. and Kore; "No one realty'know what's 'the people doing the work,"Clary, es.The company's Pittsburg plant Pohang Iron&Steel Co.Ltd.It going to happen yet, :aaid Law-`.*said. underwent a huge modernization classified as a domestic steel pi rence DiRicco,an analyst with the Until more details about the after 1986, and is equipped to ducer, but is almost entirely International Trade Commission tariff.and USS-POSCO's response process only high-quality foreign pendent on high-quality roll in Washington D.C. That agency: to it are made known, union offi- steel. Re-tooling to accommodate steel imported from Pohang will make determinations by July rials say,;it's hard to know how to domestic steel may be too expen- Korea. USS-POSCO then finisl whether'cheaper imported steep react to it all. . sive for USS-POSCO, Clary said. the steel, which is used in 1 has injured•the domestic steel "We're not yet in a position to Dale Kirkland, executive direr- manufacture of food containe market. take a position," said Daniel Gu- for of the Industrial Association of office furniture, appliances < In November, the Commerce' tierrez, finance manager for the Contra Costa County,said the du- other items. Department determined that steel steelworkers'Local 1440 in Pitts- ties as planned would hurt USS- Thomas Ferrail,a USX spok from Italy,Germany,South Korea burg. POSCO.He also wonders whether man in Pittsburgh, Pa., said I and nine other countries is subsi- The rank-and-file, he said, are foreign countries will react to the day that domestic produc dized by those governments, al-' concerned. tariff with their own new tariffs on welcome the duties as "a tort lowing it to be sold more cheaply "I can't say everybody's putting other products, or with economic tive move" to counter subsidia in the-U.S.'than domestic steel.." away their last dollar.worrying' boycotts or sanctions, underpriced foreign steel.