EC-Recently we reported on Ispat/Mittal Steel acquisition of International Steel Group for approximately $4 billion. This acquisition placed approximately 15% of domestic steel production and 40% of domestic flat-rolled steel production in foreign hands in a single stroke. We reported that 17,000 jobs and an “important national security issue” (according to President Bush) were being placed into foreign hands.

According to the US Department of Commerce, 32% of US consumption of steel products already comes from imports. Furthermore, another 20% of our US domestic production assets are controlled by foreign companies according to the IRS.

Imagine if during the cold war a Russian company had desired to acquire a US steel company. Now the outrage has turned into opportunity for investment banks, shareholders, attorneys, and politicians – who after they approve the deal may find lucrative engagements waiting for them after they leave office.

President Bush has just signed an agreement with Russia clearing the way for their entrance into the World Trade Organization so it will be even easier for them to export cheaply produced Eastern European products into our market.

With our trade debt out of control, do you think letting Russia in the WTO with a poorly negotiated trade deal is a good idea for American small businesses and workers? Do you think it is a good idea to keep selling off core industries like steel to countries like Russia?

Posted by JohnKonop on Thursday, November 30th, 2006 at 10:25 am | under Uncategorized | |RSS 2.0 feed | Comments and pings closed. |