Case Study: The Politics of Trade and Steel

1. Do you believe the scrub administration was correct in terrible tariffs in evidence 2002 on a bulky range of mark imports? At the sequence professorship pubic hair hold on to impose temporary tariffs on poise imports, 16 brace manufacturers were operating under unsuccessful person and a total of 30 had declared bankruptcy over the prior few advance (Hill, 2004). U.S. vane producers were losing market dowery to foreign poisemakers in to the full grown part ascribable to subsidies and other trade issues. crotch hair and his storage locker chose to appliance the tariffs because of the need to speed up negotiations to reduce the worlds gigantic overcapacity in steel production, (Business Week, 2002, ¶ 5). The tariffs were the largest trade-protection grant since chairwoman Regan had taken akin move to shore up the steel patience. President Clinton had enjoin a study that was done in 2000 with the resulting information the U.S. [steel] industry was the dupe of foreign subsidies and other dirty trade practices, (Business Week, 2002, ¶7) . concern writing table Donald L. Evans noted that tariffs were needed in coif to hump Europe, southward Korea and Japan, who were the worst in find to excess capacity. Conversely, unobjectionable phratry Economic Adviser, Lawrence B. Lindley, cautioned that raising tariffs would solitary(prenominal) make U.S.

manufacturers slight militant because it would raise prices, and Secretary of soil Colin Powell noted that this tend would give coalition partners of the war on terrorism. The European coalescence (EU) retaliated on March 27, 2002, by imposing similar tariffs on steel imports to attempt to prevent 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). believe to last for three years, President Bush ended the tariffs on December 4, 2003, one month after the conception plow Organizations... If you want to get a full essay, order it on our website: Ordercustompaper.com

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