Steel Modernization and Fair Trade Act

Steel Modernization and Fair Trade Act - Amends the Steel Import Stabilization Act to express the sense of the Congress that the President should commence negotiations with steel-exporting nations for the purpose of entering into a multilateral agreement to: (1) reduce or eliminate the use of subsidies, dumping, and other unfair and restrictive trade practices with respect to steel products; and (2) effectuate mechanisms for the enforcement of violations of such agreement. Declares that it is further the sense of the Congress that, if such an agreement is entered into, the President should take action to gradually phase-out bilateral arrangements (without permitting surges in steel imports) and should submit biannually to the Congress a report containing: (1) the operation of the multilateral agreement during the interval; and (2) the share of the domestic market for steel products that was accounted for by foreign-made articles during the interval.

Requires the President, until such multilateral agreement is entered into, to reserve a specified percentage of the domestic steel market for articles produced by those foreign countries that: (1) are not engaging in unfair and restrictive trade practices with respect to steel products; (2) require steel product manufacturing facilities to observe pollution control standards; and (3) are implementing internationally recognized worker rights.

Requires the Secretary of Commerce to establish procedures with respect to the importation of steel products in short supply situations.

Extends the Steel Import Stabilization Act for a five-year period.

Directs the U.S. International Trade Commission to focus on obtaining information from steel product consumers, as well as from steel companies, regarding the improvements in quality and service that result from industry modernization, including worker retraining within the industry.