Case Study: The Politics of Trade and Steel

1. Do you believe the scrub administration was correct in imposing tariffs in March 2002 on a lengthy range of mark imports? At the time hot seat Bush obstinate to impose temporary tariffs on poise imports, 16 steel manufacturers were operating under bankruptcy and a full 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 new(prenominal) heap issues. Bush and his storage locker chose to implement the tariffs because of the need to renovate up negotiations to reduce the worlds gigantic overcapacity in steel production, (Business Week, 2002, ¶ 5). The tariffs were the largest trade-protection bear since President Regan had taken akin steps to shore up the steel patience. President Clinton had enjoin a study that was do in 2000 with the resulting information the U.S. [steel] industry was the victim of foreign subsidies and other unfair trade p ractices, (Business Week, 2002, ¶7) . concern monument Donald L. Evans noted that tariffs were require 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 peerlessd that pinnacle 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 war on terrorism. The European coalescence (EU) retaliated on March 27, 2002, by imposing similar tariffs on steel impo rts to attempt to keep a flood of steel imp! orts into the EU. EU President Romano Prodi urged President Bush not to break with his protectionist measures (CNN.com, 2002). Intend to last for third 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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