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economics: the us government response to stell industry and union efforts to win protection from imports

April 3, 2016 | Author: | Posted in economics, mathematics and economics

Economics : The US government response to steel industry and union efforts to win protection from imports

This case was the response of the US government to the domestic Steel Industry which had been facing downturns as a result of the falling profits , reduced prices , several bankruptcies and several thousands of jobs losses which has been affecting the industry since the year 1998 even though before 1998 also the condition of the US steel industry had started to decline . This state of the industry has been affecting the US governments headed by Bill [banner_entry_middle]

Clinton as well as the Bush administration when it came into the White House in 2001 . Such a trend in the domestic steel industry has been the result of the foreign imports which had been unfairly priced . In to make the industry back to its normal position of profit-making , the representatives of the steel industry put forward before the Clinton administration for Section 201 action , which is a trade ruling , which if proved to be successful would permit the President to bring about a steel quota or other methods of far-reaching relief for the industry . However various critics of such relief measures stated that such measures would lead to misplacement as well as unjustified relief

Various analysts of the steel industry stated that such a situation of the US steel firms were because of the increased supply capacity present throughout the world and in US and also because various economists and consumers of steel had pointed out that cheap foreign steel was in fact good for US and the provision of quotas would affect trade retaliation There was opinions as of the nature that if steel quotas was imposed by the US government it would tend to affect the export of steel from other countries which were actually depending on steel exports for the progress of their economy and would only be advantageous to the steel industry affecting the broader US economy . The foreign steel makers were of the view that the situation of the US steel industry was as a result of increased competition among the domestic firms and also because of an absence of consolidation . As the Clinton administration left without bringing about the case for Section 201 and the Bush administration was pressurized to bring about a comprehensive 201 trade investigation , the decisions of the Bush administration was expected to have wide-ranging effects for the steel industry of the country , for the entire US economy and for the country ‘s link with other foreign partners

When Bush administration came into power in 2001 , even though the Steel Workers Union and Congressional Steel Caucus did not attempt to establish relationship with the President , they made all efforts in to bring about protection for the industry . However it was expected that there would be attempts at promoting policies for free trade and that Bush would not allow for section 201 for protection of the steel industry . By March 2001 , a broad-based coalition of steel associations… [banner_entry_footer]


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