Case Study: The Politics of Trade and Steel

1. Do you believe the scrub administration was correct in elevated tariffs in bump into 2002 on a drawn-out range of mark imports? At the era prexy scrubbing firm to impose temporary tariffs on poise imports, 16 make manufacturers were operating under nonstarter and a total of 30 had declared bankruptcy everyplace the prior few mount up (Hill, 2004). U.S. stigma producers were losing market helping to foreign brandmakers in fully grown part overdue to subsidies and other trade issues. scrub and his storage locker chose to apply 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 chairman Regan had taken akin locomote 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 victim of foreign subsidies and other unjust trade practices, (Business Week, 2002, ¶7) . concern secretaire Donald L. Evans noted that tariffs were needed in coif to hump Europe, southward Korea and Japan, who were the worst in look to excess capacity. Conversely, unobjectionable dramatic art Economic Adviser, Lawrence B. Lindley, cautioned that raising tariffs would and make U.S.

manufacturers slight competitive because it would raise prices, and Secretary of rural area 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). stand for to last for three years, President Bush ended the tariffs on December 4, 2003, one month after the conception allot Organizations... If you want to get a full essay, order it on our website: Ordercustompaper.com

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