FORGING ALLIANCES IN ‘STEEL DUMPING’ DEBATE

Steel has once again become a big issue in U.S. trade policy. Many steel companies around the Midwest are worried about ‘steel dumping’ and are urging President Bush to support new tariffs and quotas on imported steel. But some steel users say the Bush Administration should back off. How the President handles the issue could affect both jobs and the environment in the region. The Great Lakes Radio Consortium’s Chuck Quirmbach reports:

Transcript

Steel has once again become a big issue in United States trade policy. Many steel companies around the Midwest are worried about steel dumping and are urging President Bush to support new tariffs and quotas on imported steel. But some steel users say the Bush administration should back off. How the president handles the issue could affect both jobs and the environment in the Great Lakes region. The Great Lakes Radio Consortium’s Chuck Quirmbach reports.


The amount of commonly used types of foreign steel coming into the United States has risen about a third over the last five years, and a federal trade panel ruled recently that much of that imported steel is being sold here at a price lower than what it cost to make it and ship it here. That’s a practice called dumping. The trade panel found that such dumping poses a serious threat to domestic steel makers. So the panel says President Bush should slap tariffs on many product lines of foreign-made steel to raise the prices of the imports. But that’s not such a hot idea to some other industries, which use plenty of foreign steel.


(furnace/factory ambient sound)


Here at the Engel Tool and Forge Company in Milwaukee…this second-generation family business now uses about 600 tons a year of steel imported from countries like Brazil and Sweden. In the warm and grimy forging area, workers use a robot to move five foot long steel bars that have been heated to 2100 degrees Fahrenheit. Owner chuck Engel watches the orange and white-hot bars enter a machine


“That’s a preforming press …a hydraulic press that preforms the metal. It’s removed from there and moved into a finished form that we gain our finished desired shape.” (WHAM noise)


The bars are scrunched into wheel axles that’ll be shipped to heavy equipment makers in the mining or construction industries. Engel says his company is doing all right during the recession. So he’s says he strongly opposed to the president possibly tinkering with that success by slapping higher tariffs on imported steel.


“I am sure there is a certain amount of unfairness on both sides of the fence but I believe that competition should be what sorts this problem out rather than the government.”


Engel contends domestic steel makers got quote- fat and sassy — over the last twenty years…and he says mergers, downsizing and other changes now taking place among domestic manufacturers will help them compete in the world steel market. Engel says if steel tariffs do go up…he’d have to pass along the price hikes. But other players are urging President Bush to approve higher steel tariffs. The United Steelworkers of America hopes the president even goes beyond what the trade panel recommends. Some environmentalists are also quietly supporting the domestic steel industry. That’s even though green groups have a track record of battling steel manufacturers. Cameron Davis of the Chicago-based lake Michigan federation acknowledges big steel has a dirty history in the area.


“Well traditionally, the steel industry especially in northwest Indiana has been responsible for a fair amount of pollution in the Great Lakes…and that’s air-based pollution, water based pollution, land based pollution across the board.”


But lately environmentalists have been trying to forge alliances with unions like the steelworkers. And Davis notes that environmental lawsuits and other changes have gotten domestic steel makers to start cleaning up their act in recent years. He says if nothing is done to slow the rise in steel imports that could make the United States environment worse. Davis cites the aquatic nuisance species that tag along in the ballast water of foreign ships…including presumably, the ships that bring in foreign steel.


“Without some help in protecting the GL steel industry, we’ll see more and more foreign steel coming into the country. And with that foreign steel probably more aquatic nuisance species that will do more damage not only to the Great Lakes but to rest of country.”


United States flagged Great Lakes shipping companies that haul iron ore from Minnesota and northern Michigan are also siding with the domestic steel makers. George Ryan is president of the Lake Carriers Association. He says if the domestic steel industry keeps getting hurt by foreign imports…there might be some local improvements like less air pollution emitted over Gary or Cleveland, but Ryan says, what about the rest of the globe.


“For anyone who has seen photographs from outer space, we have one world that moves the air around to all parts of the world we can’t really say we condone dirty air in Brazil and in China and okay to do it there cause we’re protecting our air in the United States.”


Ryan is a member of the Great Lakes Commission…which is urging the president and congress to boost steel exports and reduce unfair competition from abroad. Commissioners do the bidding of eight Great Lakes governors…most of whom are republicans like George W. Bush. If the president does not do more to protect United States steel makers and jobs that could be an issue in the gubernatorial and congressional elections next November. Mr. Bush has to announce his plans on steel tariffs and quotas by mid-February. For the Great Lakes Radio Consortium this is Chuck Quirmbach in Milwaukee.

RECORD YEAR FOR BEACH CLOSINGS (Version 1)

Lake Michigan had a record number of beach closings this year. The Great Lakes Radio Consortium’s Jonathan Ahl has more:

Transcript

Lake Michigan had a record number of beach closings last year. The Great Lakes Radio Consortium’s Jonathan Ahl reports.


The Lake Michigan Federation is reporting almost six hundred beach closings on Lake Michigan in 2001. That’s up from just over four hundred last year. Federation director Cameron Davis says most of the closings are due to wastewater carrying bacteria to the lakes when treatment plants are at capacity. He says the solution is to cut back on development near the lakes:


“We need to try to limit the amount of pavement that’s being laid down all across the region, so that rainwater naturally filters through the ground rather than getting shuttled off into a sewage treatment plant.”


Davis says the number of beach closings on Lake Michigan should actually be higher than his report shows. He says Michigan does a poor job testing for bacteria near beaches, and says Wisconsin’s numbers are excluding Sheboygan County where there have been problems in the past. For the Great Lakes Radio Consortium, I’m Jonathan Ahl.

RECORD YEAR FOR BEACH CLOSINGS (Version 2)

Lake Michigan beaches were closed more often this summer than ever before. As the Great Lakes Radio Consortium’s Jonathan Ahl reports, beach closings can translate into significant economic loss:

Transcript

Lake Michigan beaches were closed more often this summer than ever before. The Great Lakes Radio Consortium’s Jonathan Ahl reports.


A report from the Lake Michigan Federation shows an all-time high of 600 beach closings in 2001. High levels of bacteria found in the water caused most of the closings. Federation director Cameron Davis says in addition to the environmental problems, the closings have an economic impact on the region:


“Take a look at a place like Chicago that gets 60 million visitors a year to the lakefront. And you get a beach closing Labor Day weekend or a fourth of July weekend. You’re looking at millions of people, some from around the world, that can’t visit the beaches here.”


Davis says the bacteria is getting into the water when heavy rains force wastewater and sewage carrying human and animal waste past treatment plants and into the lake. The Lake Michigan Federation is setting up a center to help citizens and community groups solve bacteria problems at beaches. For the Great Lakes Radio Consortium, I’m Jonathan Ahl.

Counterpoint: Drilling Not Worth Risk

As the debate on a national energy policy intensifies, the hunt for more places to drill and dig for new energy is escalating. States are now turning their attention to prospecting in one place that hits close to home: the Great Lakes. As Great Lakes Radio Consortium commentator Cameron Davis of the Lake Michigan Federation explains, drilling under the continent’s largest body of fresh surface water is not something to be taken lightly:

Transcript

As the debate on a national energy policy intensifies, the hunt for more places to drill and dig for new energy is escalating. States are now focusing their attention on prospecting for one place that hits close to home: the Great Lakes. As commentator Cameron Davis of the Lake Michigan Federation explains, drilling under the continent’s largest body of fresh surface water is not something to be taken lightly.


No matter which estimate you believe – that there’s only enough oil and gas to power a Great Lakes state for 2 minutes or 8 weeks – opening the Great Lakes to new oil and gas drilling is simply not worth the risk. Hydrogen sulfide, known to exist in lakebed oil and gas reserves, can escape during drilling causing far-reaching human health problems. Wellhead and pipeline leaks can contaminate groundwater and surface water in streams, often without adequate cleanups by the state agency responsible for drilling oversight. And, drilling can damage some of the most fragile fish and wildlife habitat known, habitat that exists along Great Lakes coasts.


The argument that drilling means more royalties to states doesn’t even hold up. One state Auditor General recently found that oversight of leasing and royalty payments from drilling operations continues to be lax. What does this mean? It means that taxpayers aren’t getting the financial benefits from drilling that they’re supposed to get.


Last, it’s not unusual for the same state agency to serve as subjective promoter of drilling while at the same time supposing to be the objective regulator. States such as Michigan, which is leading the charge for new drilling, can’t have it both ways and maintain their credibility. If they try to have it both ways, it’s inevitable that Congress will step in – as it did this summer with its own legislation.


President Bush, legislative leaders from both sides of the aisle, and a majority of citizens have all said that Great Lakes oil and gas drilling isn’t worth the risk. So why does a bad idea keep moving forward?

Related Links

What’s an Ecosystem Worth?

A lot of things found in and around the Great Lakes can be bought and sold – from drinking water to lakefront property. Still, some features of the lakes – like its ecosystem – are not for sale. The Great Lakes Radio Consortium’s Jim Meadows reports… a new study tries to measure the value of something many consider priceless:

Transcript

A lot of things found in and around the Great Lakes can be bought and sold, from drinking water to lakefront property. Still, some features of the lakes — like its ecosystem — are not for sale. The Great Lakes Consortium’s Jim Meadows reports a new study tries to measure the value of something many consider priceless.


The Lake Michigan Federation says there’s no commodity price for healthy fish and birds living around Lake Michigan — but that people are willing to pay to preserve them. A study prepared for the Federation at the University of Illinois at Chicago estimates how much people would pay — the so-called “natural capital” value of the southern Lake Michigan shoreline. Anna Cooper, who worked on the study, says their numbers could play a role in future decisions about the lake. Just one example she gives is the decision in Chicago to close a small airport along the lakeshore. Meigs would be closed, and the land used for other purposes.


“You know, if it could be shown that having that area as a natural preserve or changing it back into a wetland or something like that, if that could be shown to be basically cost-effective, that people … would value those species and that habitat more than they would value that land put to another use.”


The study estimates Chicago area residents are willing to pay 117 to 197 dollars per household to preserve the lakeshore ecosystem – for a total natural capital value of roughly three to five billion dollars per year, but it’s only an estimate. The Lake Michigan Federation’s Joel Brammeier says they couldn’t afford to do an actual survey of residents — so they extrapolated.


“In this study, we employed a technique called benefits transfer, which is the transferring of data from one study with a similar species and situation to a new region, in this case the Chicago region.”


Still, Brammeier says their study is a good conservative estimate of how much Chicagoans value the lakeshore ecosystem, and he believes other parts of the Great Lakes would also benefit from a valuation of their natural capital. For the Great Lakes Radio Consortium, I’m Jim Meadows.

Mining Endangers Sand Dunes

The dunes around Lake Michigan draw millions of visitors each year. But
the dunes are more than just a tourist attraction: the sand is a
valuable commodity in manufacturing. And sand dune mining has been
going on since the turn of the century. Today, dunes in Illinois and
Wisconsin are protected since they fall within state park boundaries.
There are some small mining operations in some of Indiana’s dunes, but
by far, most sand dune mining happens in Michigan. The state’s had a
law in place for more than twenty years to regulate the mining… But a
new report alleges that the law isn’t working. And the dunes are slowly
vanishing. The Great Lakes Radio Consortium’s Wendy Nelson reports:

Mining Endangers Sand Dunes (Wrap Version)

Sand dune mining has been going on around Lake Michigan since the dawn
of the industrial age. The sand is used by foundries to make molds for
casting metal. But despite a 1976 law to protect the dunes, a new
report released today (Tuesday 4/20) claims the dunes are in more danger
than ever. The Great Lakes Radio Consortium’s Wendy Nelson reports:

Water Diversion Lawsuit

The Sierra Club and six other environmental groups are suing the Army Corps of Engineers. The environmentalists claim the Corps (core) is violating a federal law that prevents the diversion of Great Lakes waters. The Great Lakes Radio Consortium’s Steve Frenkel reports: