National Security Requires Sound Trade Policy

Leslie will be joined by Tom Conway, President of the United Steelworkers (USW), North America’s largest industrial union. 
They’re 1.2 million members and retirees strong in the United States, Canada and the Caribbean. They proudly represent men and women who work in nearly every industry there is.

The two will have a broad conversation about how national security requires sound trade policy.

Here are the subtopics that they'll be covering during the interview:

Manufacturing in key sectors like steel and aluminum underpins national security, providing vital resources for our military and helping the nation meet its critical infrastructure needs.

Section 232s have been an essential part of this since 2018. While there have been some modifications in relations to trading partners like the European Union and the United Kingdom, these measures remain an essential part in ensuring the U.S. can protect itself and rebuild its infrastructure.

Facing global overcapacity, largely driven by China’s unfair trade practices, 232 relief measures worked –and are continuing to work – as intended.

- In steel, they improved industry conditions, spurred investments, and directly created thousands of new jobs.
- They also allowed for needed capital investments so that U.S. steelmakers can continue to produce some of the best, cleanest steel in the world.
- And domestic steel is underpinning the massive infrastructure upgrades we’re making in communities across the country thanks to President Biden’s vision and leadership.

This is why a recent ruling by the World Trade Organization (WTO) was not only deeply flawed, but also dangerous. A recent decision by the dispute panel of the United States-Mexico-Canada Agreement, (USMCA), raises similar concerns about overreach.

- The WTO has no standing to interfere with national security, and its attempt to do so undermines the credibility of the entire organization.
- Allowing China to join the WTO, more than 20 years ago, was a mistake that has allowed the Chinese Communist Party (CCP) to leverage its position and continue its predatory practices.
- Overcapacity, dumping, and illegal subsidies remain urgent concerns – which the WTO again made clear it is not equipped to address.
- Until we have a broader reform of our trade system, we must instead rely on the tools we have at our disposal like filing trade cases and keeping the 232 relief measures in place.

The Russian invasion of Ukraine also reinforced how critical trade is to national security.

- The U.S. aluminum industry was already struggling, and then last year Century Aluminum Company idled its smelter in Hawesville, Ky.. They were the last domestic producer of commercial quantities of military-grade aluminum remaining after decades of foreign competition undercut the U.S. industry.
- Energy prices caused by the war are also hurting European Aluminum producers, leaving markets open to Russian exports.
- Sanctions on Russian aluminum will be a critical part of keeping not only the U.S. but the whole world safe, as will bringing new smelting capacity online.

As we look to the future, domestic production and sound trade policy will be essential in another aspect of our national security: meeting our energy needs.

- There is tremendous potential in areas like offshore wind, and the Biden administration is working to build out our domestic industry and secure the supply chain this industry will need to be successful.

- Europe has a significant lead.
- And China is ramping up production. Chinese producers are currently able to produce relatively inexpensive products because they can rely on the country’s overcapacity in steel, dominance in rare earths, and control over the supply chain, setting up a “race to the bottom.”
- So the U.S. needs to act quickly.

The previous administration made it clear that we cannot exist in a vacuum when it comes to trade, that we need careful coordination with trusted partners. This is why it is crucial that we’re deliberate in our work in the Indo-Pacific region. 

- The administration’s Indo-Pacific Economic Framework contains important priorities, including strong labor and environmental standards.
- However, it’s essential that the agreement adheres to worker-centered values, and that the U.S. selects only partners who are serious about realizing these goals, and intend to meet its terms.
- Only then will this new chapter make our trade policy sounder – and our nation safer.

The website for the United Steelworkers is www.USW.org. Their handle on Twitter and Instagram is @steelworkers.