Case Study: The Politics of Trade and Steel

1. Do you believe the supply administration was correct in imposing tariffs in March 2002 on a encompassing range of mark imports? At the time president Bush obstinate to impose temporary tariffs on poise imports, 16 steel manufacturers were operating under bankruptcy and a innate of 30 had declared bankruptcy over the prior few age (Hill, 2004). U.S. steel producers were losing market share to foreign steelmakers in fully grown part due to subsidies and another(prenominal) treat issues. Bush and his storage locker chose to implement the tariffs because of the need to hasten up negotiations to reduce the worlds gigantic overcapacity in steel production, (Business Week, 2002, ¶ 5). The tariffs were the largest trade-protection take into account since President Regan had taken akin steps to shore up the steel patience. President Clinton had enjoin a study that was make in 2000 with the resulting information the U.S. [steel] industry was the victim of foreign subsidi es and other unfair trade practices, (Business Week, 2002, ¶7) . concern secretaire Donald L. Evans noted that tariffs were demand in coif to hump Europe, South Korea and Japan, who were the worst in regard to excess capacity. Conversely, unobjectionable House Economic Adviser, Lawrence B. Lindley, cauti singled that facts of life tariffs would only make U.S.

manufacturers slight competitive because it would raise prices, and Secretary of State Colin Powell noted that this tend would alienate coalition partners of the fight on terrorism. The European coalescence (EU) retaliated on March 27, 2002, by impos ing similar tariffs on steel imports to atte! mpt to stay fresh a flood of steel imports into the EU. EU President Romano Prodi urged President Bush not to break with his protectionist measures (CNN.com, 2002). Intend to last for terce years, President Bush ended the tariffs on December 4, 2003, one month after the conception Trade Organizations... If you want to delineate a full essay, order it on our website: OrderCustomPaper.com

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