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Trading on an Unequal Playing Field:
Dan DiMicco Speaks Out
By Jim Stavis
Last month, I attended an MSCI (Metal Service Center Institute) dinner where Dan DiMicco, the CEO of Nucor Steel, was the keynote speaker. Mr. DiMicco is quite an engaging speaker who can light up the room with opinions, personal anecdotes and is quite effective at spreading the Nucor gospel. On this night however, Mr. DiMicco had a different message to convey. He was there to speak about trade and how the United States is allowing countries (most notably China) to take advantage of us to the point that we are truly in danger of losing our manufacturing base. Through currency manipulation, foreign country subsidies, an ineffective WTO (World Trade Organization) and the inequity of environmental compliance, the United States is playing on an unequal playing field with respect to global commerce.
According to Mr. DiMicco, there has been no president since Ronald Reagan that truly has understood the importance of enforcing trade laws. Applying trade remedies is a very costly and time consuming process that, in some cases, can be rendered useless if not supported by our elected leaders. Enforcement of trade inequities has been a large part of the problem, but also the rules themselves have favored so called "under-developed" countries. China, for example, the lowest cost supplier, has sold goods at prices that are unfairly below world markets and has operated by rules that violate the World Trade Organization guidelines. Yet its illegal practices have continued unabated year after year. In the past three years alone China has increased their steel production to equal that of the entire U.S. steel production. Despite much talk and public complaints, neither the U.S. government nor the WTO seems willing or able to persuade China to change their ways. Though the Bush administration says it cares about U.S. manufacturers, it does little to support them.
Indeed, imports from China were $242.5 billion or 14.6 percent of total U.S. imports of $1.674 trillion in 2005. This has contributed to our trade deficit which has swelled to record levels. This is not just a steel problem; rather it is an economic crisis for our country. As steel distributors, we have seen many of our customers bring in products from China as a way to stay competitive. As Mr. DiMicco
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pointed out, "as long as the rules are skewed in favor of the 'under-developed' countries, American businesses will be forced to go to those countries in order to stay competitive. We cannot blame them. We cannot blame consumers from shopping at Wal-Mart because they have cheap prices either. But the playing field is unfair and has to change."
So the big question is: what can be done about it? Along with the MSCI, Mr. DiMicco has focused his efforts on lobbying our elected officials (senators and congressmen) so they can understand how important these issues are for North American manufacturing. One piece of that effort is S.295, where imports from China would be subject to a tariff of 27.5 percent so long as China continues to manipulate the value of its currency. If you would like to learn more, go to the MSCI.org Web site. Unless we take immediate action, we will have no one to blame but ourselves. We encourage you to get involved …
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Trifecta Update
As many of you know if you read this newsletter, I had a heart and kidney transplant last November 3rd. Now nearly a year later, I have been listed for the third organ, a pancreas, which will complete what I have termed my "Organ Trifecta." Miraculously, my progress this year has been incredible, beyond words. I have had zero rejection since the surgery, which is really uncommon. For all of you that have been following my journey-providing your prayers, warm wishes and support-I cannot begin to thank you enough. It has been awhile since I have communicated my current condition, so here we go:
When you become a transplant recipient, there is a donor who tragically dies in order for the miracle to happen. In my case, because I was so focused on my recovery, I did not dwell on the donor's part of the story. I sent a letter to the donor's family expressing my gratitude and condolences for their loss. In this case it was a 17-year-old football player from Lompoc who tragically died in a car accident on Halloween day last year. I was told that in less than five percent of the cases the donor family will respond and in less than two percent of the time will you meet the donor's family. Well, I was in that two percent group. Last June, the donor's mother had written back to me and invited me to attend what would have been her son's high school graduation. We met the family at
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the One Legacy office, which is the organization that is the liaison between donor and recipient. Our meeting was quite emotional as she wanted to listen to her son's heart beating inside my chest. We shared our stories as that accident on Halloween had changed both of our lives forever. I did attend the graduation and it was an emotional, almost surreal day for all of us. The mother then took us to the accident site which again stirred more emotions. We have continued to stay in touch to this day. You can never fully understand the value of a life, until you have lost one.
And now, I push forward to complete my health makeover. It truly is unbelievable to see where I am now compared to where I was when this all started. I can only imagine how I will feel after having been an insulin dependant diabetic for nearly 35 years, to have a functioning pancreas. I know now that I truly have been blessed.
Those that read this may scratch their head and wonder how I can say that after all the adversity I have had to endure. But at the end of the day, I'm still here living my life-spreading my gospel-inspiring any and all that I can. And for me, that is my ultimate reward. Live your life and be thankful for each and every day you've been given. Because you never know what tomorrow may bring.
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Quote of the Month
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| "We make a living by what we get; we make a life by what we give." |
| –Sir Winston Churchill |
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