The US Steel Industry in 2004: Still in Need of Protection?
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : ECON006
Case Length : 20 Pages
Period : 2001 - 2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Steel
Industry : -
Countries : USA
To download The US Steel Industry in 2004: Still in Need of Protection? case study (Case Code:
ECON006) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 600;
For delivery through courier (within India): Rs. 600 + Rs. 25 for Shipping &
Handling Charges
»
Economics
Case Studies
» Case Studies Collection
» ICMR Home
» Short Cases Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company 
Please note:
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.
Chat with us
Please leave your feedback
|
|
<< Previous
Excerpts Contd...
Protectionism vs. Free Trade
|
President Bush's tariff measures to protect the
domestic steel industry were hailed by supporters of protectionism but
were vehemently criticized by proponents of free trade. Justifications
were given on both sides. Some analysts felt that the US steel industry
should be protected not only because of the pride associated with it but
also because of its key role in the US economy. The importance of steel
as a commodity in the US economy was next only to oil. Steel was a
source of political and economic strength for the country. Some of these
analysts added that major steel producing countries such as Japan and
Korea were not dependable trading partners as these countries had in the
past resorted to unfair trade practices such as dumping and predatory
pricing... |
|
Trade Wars
As expected, the imposition of Section 201 tariff measures by the president was
vehemently opposed by the US's major trading partners including the European
Union (EU), Japan, Brazil, South Korea and other countries, and they complained
to the WTO Appellate Body. The EU even threatened to impose tariffs upto 100
percent on US imports valued at $435 million unless the US government dropped
the tariffs...
Section 201 Tariff Measures Lifted
In December 2003, the president lifted the tariffs, thus avoiding a trade war
with the EU and Asian countries. Announcing the lifting of the tariffs, the
president said, "I took action to give the industry a chance to adjust to the
surge in foreign imports and to give relief to the workers and communities that
depend on steel for their jobs and livelihoods. The safeguard measures have now
achieved their purpose, and as a result of changed economic circumstances, it is
time to lift them."...
|
|
Future Outlook
According to David S. Sutherland, chairman of American Iron and Steel
Institute (AISI), "...the U.S. steel industry faces significant domestic
and international challenges in 2004. Raw material costs are increasing
rapidly. World steel structural imbalances and trade-distorting
practices are not going away. The global attack against US trade laws
continues. The China currency and trade deficit problem is harming
steel's customers. We need to work closely with our customers this year
to preserve and strengthen the manufacturing base in the United States
and North America as a whole."... |
Exhibits
Exhibit I: Domestic Production, Exports and Imports of Steel in the US
Exhibit II: Imports of Steel in to the US
Exhibit III: Purchasing Magazine Transaction Price for Hot-Rolled Sheet, Midwest
Market Average January 1980 - December 2003
Exhibit IV: Bankruptcy Filing by US Steel Companies (1997-2002)
Exhibit V: Falling U.S. Steel Imports since the Late 1990s
Exhibit VI: U. S. Imports of Finished Steel Mill Products
Exhibit VII: U. S. Imports of Finished Steel Mill Products
|
|
