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 immense range of mark imports? At the time prexy Bush obstinate to impose temporary tariffs on poise imports, 16 steel manufacturers were operating under bankruptcy and a complete of 30 had declared bankruptcy over the prior hardly a(prenominal) age (Hill, 2004). U.S. steel producers were losing market share to foreign steelmakers in fully grown part due to subsidies and otherwise parcel out issues. Bush and his storage locker chose to implement the tariffs because of the need to stimulate up negotiations to reduce the worlds gigantic overcapacity in steel production, (Business Week, 2002, ¶ 5). The tariffs were the largest trade-protection surrender since President Regan had taken akin steps to shore up the steel patience. President Clinton had enjoin a study that was through with(p) in 2000 with the resulting information the U.S. [steel] industry was the victim of for eign subsidies and other unfair trade practices, (Business Week, 2002, ¶7) . concern depository Donald L. Evans noted that tariffs were involve 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 whizzd that reproduction 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, 200 2, by imposing similar tariffs on steel impo! rts to attempt to rule out 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 trio years, President Bush ended the tariffs on December 4, 2003, one month after the conception Trade Organizations... If you want to observe a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper