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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ThemesEconomics, Politics and Business Enviornment
||2001 - 2004
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.
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.
» The structure of an industry and its affect on the competitiveness of the
» The rationale behind consolidation and its affects on industry structure
» The advantages and disadvantages of free trade
» The advantages and disadvantages of protectionism
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
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