The legislation, co-sponsored by Rep. Jason Altmire, D-McCandless, and Phil English, R-Erie, targets free market disruptions caused by Chinese imports.
Ludlum officials said the Supporting America's Manufacturers Act will prevent unfair dumping of stainless steel -- the company's key product -- by government-supported Chinese steelmakers.
Ludlum spokesman Dan Greenfield said the legislation is needed.
"Just look at the facts. Imports from China (are) up over 50 percent this year," he said. "In the first half of the year, our shipments have just been OK. If the Chinese imports hadn't been there, our shipments would have been better.
"We absolutely support the bill."
Douglas Kittenbrink, an executive vice president for Ludlum's parent company, Allegheny Technologies Inc., chairs the Specialty Steel Industry of North America trade association.
In a prepared statement on the Altmire-English legislation, Kittenbrink said, "We strongly support Congressman Altmire's efforts to improve the Section 421 trade laws to more effectively address China's unfair exports of stainless products."
Kittenbrink said Congress should take action against China's manipulation of its currency, which he called a trade-related subsidy.
"We believe blatant currency manipulation is giving Chinese manufacturers a 30 to 35 percent unfair price advantage on products being exported into the U.S.," he said.
Earlier this week, Altmire visited Ludlum's Brackenridge Works to discuss the legislation. He said President Bush has denied every petition for trade assistance filed under Section 421 of the U.S.-China Relations Act of 2000.
"For the past eight years, the president has unilaterally refused to follow the recommendations of the International Trade Commission and grant American manufacturers the assistance they need to remain strong in the face of a surge of Chinese imports," Altmire said.
"If China is dumping their steel and if the ITC agrees that China is manipulating that process, if the president chooses not to enforce that ruling then the Congress can do it for him," Altmire said, referring to the thrust of the legislation.
He said China has a variety of subsidy programs -- including cash and land grants, transfers of ownership at prices below market value, debt forgiveness and manipulation of raw materials.
"It's a continuing problem across the country but it is acute in Western Pennsylvania because we still have steel manufacturing and China is dumping its steel here at a cost less than what it costs our manufacturers to purchase raw materials," Altmire said.
Altmire's opponent in the November general election was not enthusiastic about the legislation
Republican Melissa Hart, from whom Altmire wrested the seat in an upset in 2006, said Bush has acted on behalf of the steel industry in the past. She pointed specifically to 2002 when Bush acted against steel imports in the wake of a discussion she and Sen. Arlen Specter, R-Pa., had with him shortly after she took office.
"As a result of that discussion with myself and Senator Specter, the president did impose tariffs," Hart said.
She said the bill appears to be aiming to change the balance of power by bringing Congress into the mix.
"The bill is pretty narrow and it looks to limit the authority of the president and requires the president to wait until the ITC makes a determination," Hart said. "That could slow down the process. If for example, there is a sudden increase in imports and the president wanted to act immediately, he can't react quickly and I have a problem with that."
"Part of what they are trying to do is politicize the issue," Hart added. "I'm not sure I support this or not because it could politicize the trade issue to the point where it goes back to Congress for a vote. The only members of Congress who spend a significant amount of time on trade are the members of the Ways and Means Committee."
Greenfield views the legislation as a matter of fairness to American companies and American workers.
"The U.S. has historically been the most open economy in the world and that is a good thing -- as long as everybody plays by the rules," Greenfield said. "It is very difficult to compete with competitors who are subsidized. We just want our company and our employees to have a fair playing field around the world because they can compete with anybody."
Altmire said the bill has been included as part of a major trade bill the House has put together and will act on in September.
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