The US Steel Industry in 2004: Still in Need of Protection?

 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : ECON006 For delivery in electronic format: Rs. 600;
For delivery through courier (within India): Rs. 600 + Rs. 25 for Shipping & Handling Charges

Themes

Economics, Politics and Business Enviornment
Case Length : 20 Pages
Period : 2001 - 2004
Pub Date : 2004
Teaching Note : Not Available
Organization : Steel
Industry : -
Countries : USA

Abstract:

Since the late 1960s, the US steel industry has been asking for protection from imports and subsidies to help alleviate its troubles. The US government has, from time to time, announced various protectionist measures. In 2001, President George W Bush announced his Steel Program. It consisted of three parts: negotiations with trading partners to eliminate inefficient excess capacity in the steel industry worldwide; negotiations with trading partners to eliminate the distorting practices including subsidies that resulted in excess capacity; and investigation under Section 201 to determine whether the industry was harmed by low-priced steel imports.

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After the investigation by the U.S. International Trade Commission (USITC), in March 2002, the President imposed tariff measures under Section 201 to help domestic producers to compete with imported steel.

Issues:

The structure of an industry and its affect on the competitiveness of the industry

The rationale behind consolidation and its affects on industry structure

The advantages and disadvantages of free trade

The advantages and disadvantages of protectionism

Contents:

  Page No.
Struggling US Steel Industry 1
Early History 1
Technological Innovations 3
Competition 4
Consolidation 5
Government Protection 6
The President's Steel Program 7
Protectionism vs. Free Trade 9
Trade Wars 10
Section 201 Tariff Measures Lifted 11
Future Outlook 12
Exhibits 14

Keywords:

1960s, US, steel industry, imports, subsidies, alleviate, troubles, protectionist, 2001, President, George W Bush, Steel Program, negotiations, trading partners, excess capacity, steel, industry worldwide, excess capacity, Section 201, low-priced steel, imports, U.S. International Trade Commission, USITC, March 2002, President, Section 201, steel

Struggling US Steel Industry  - Next Page>>

 

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