The SIU-affiliated Maritime Trades Department (MTD) is teaming up with other labor organizations to help level the playing field with China when it comes to shipbuilding.
SIU President David Heindel – in his role as MTD president – attended a March 12 press conference in the Senate where the filing of a petition with the United States Trade Representative ( USTR) was announced. The appeal calls on the USTR to initiate an investigation of Chinese commercial shipbuilding.
U.S. Senators Tammy Baldwin (D-Wisconsin) and Bob Casey (D-Pennsylvania) spoke at the news conference and strongly declared their support for the petition.
In remarks prepared for the event, Heindel said, “On behalf of the Maritime Trades Department as well as my home union, the Seafarers, we are proud supporters of this overdue effort to promote American shipbuilding…. I have 100 percent confidence in our brothers and sisters who work at United States shipyards. They are second to none when it comes to skill and dedication and craftsmanship, and I know they’ll rise to the occasion if we simply give them the chance by creating a level playing field.”
The United Steelworkers union (USW), an MTD affiliate, is leading the labor groups involved in this campaign. Among those also on board are the International Association of Machinists and Aerospace Workers; the International Brotherhood of Boilermakers; and the International Brotherhood of Electrical Workers. They jointly filed what is known as a Section 301 petition.
The comprehensive document (more than 4,000 pages), among many other steps, calls for stricter enforcement of the Jones Act and cargo preference laws, and also requests greater funding for both the Maritime Security Program and the Tanker Security Program.
The USW announced the petition and noted, “The People’s Republic of China (PRC), over the past two decades, enacted a comprehensive strategy to dominate global transportation and logistics networks, including employing an array of nonmarket policies. Meanwhile, U.S. shipbuilding capacity continues to diminish.”
“The United States once had nearly 30 major shipyards; now we’re down to just a handful,” said USW International President David McCall. “That correlates with more than 70,000 lost shipbuilding jobs, not to mention all the secondary jobs the industry supports.”
The union reported that a single commercial ship can require approximately 13,000 tons of structural steel, 60,000 gallons of paint, 130 miles of electrical cable, and many other products tens of thousands of union workers proudly produce.
“The PRC is using commercial shipbuilding to dominate the full spectrum of global trade, choking out all competitors,” McCall said. “If we do not act quickly, we will soon be dependent on China not only for the products their vessels bring into our ports but also for the ships themselves.”
McCall noted that in addition to the grave economic consequences of the PRC’s policies, the growing imbalance in shipbuilding also threatens U.S. national security.
“China has surpassed the United States and now operates the world’s largest navy,” said McCall. “Rebuilding our U.S. Merchant Marine is not only essential to increasing our nation’s sealift capability, it will help shore up the critical supply chains our military and commercial shipbuilding industries share, making us safer and more resilient.”
“When we make things in America, we build strong supply chains, create good-paying jobs, and can keep our country safe,” Baldwin said at the news conference. “Over the last two decades, China has tried to rig the system with unfair trade practices in the shipbuilding industry – hurting American workers, American shipbuilders, and our national security. Today, we’re standing with American workers and calling on the Biden Administration to quickly investigate China’s anti-competitive practices and help level the playing field.”
“On a level playing field, American workers can out-compete anyone,” Casey stated. “That’s why Senator Baldwin and I are leading the effort in Congress to push the Biden Administration to investigate and impose tariffs on the Chinese Communist Party’s shipbuilding industry. To protect the American steel industry, our workers, and our jobs, we’ve got to crack down and hold China accountable.”
The senators sent a letter to the administration backing the petition.
Additionally, one day before the news conference, the Shipbuilders Council of America (SCA) issued a statement supporting the undertaking. SCA President Matthew Paxton wrote in part, “The SCA applauds this effort to place a spotlight on what has been a thoroughly state-orchestrated industrial campaign by China to drive out global competition in shipbuilding and ship repair with the goal of controlling international shipping and the crippling of manufacturing businesses around the world, particularly in the U.S. This race to bottom for cheap-built and repaired ships and below market rate shipping has led to a global dependence on China for these products and in certain instances the flow of international commerce. China’s recent aggression in the Indo- Pacific Region, including unlawful maritime activities, unprovoked confrontations with the U.S. and its allies, and threats to international shipping lanes, raise serious security concerns as they rapidly grow both its military and commercial fleets. The time is now for the U.S. to put in place appropriate measures to lessen the impacts of China’s undue influence over this manufacturing sector and promote trade policies and incentives to grow the overall domestic shipyard industrial base.”
USTR Katherine Tai had 45 days (from the filing date) to determine whether she will pursue an investigation of Chinese shipbuilding. In an online statement, she said, “We have seen the PRC create dependencies and vulnerabilities in multiple sectors, like steel, aluminum, solar, batteries, and critical minerals, harming American workers and businesses and creating real risks for our supply chains. USTR and the Biden-Harris Administration are fighting every day to put working families first, rebuild American manufacturing, and strengthen our supply chains. I look forward to reviewing this petition in detail.”
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