Trade Issues

After Steel, Which Industries Will Want Protection Next?

The U.S. steel industry has already filed legal cases against Japan, Russia and Brazil -- charging that they are selling steel in the U.S. at unfairly low prices. Eventually the industry may bring as many as 30 more cases against foreign steel producers.

Politicians from steel-making states are demanding that the Clinton administration take steps to slow steel imports -- with governors from 13 of the states warning of "a major crisis."

These actions have left economists and trade officials wondering which other industries will attempt to follow steel's lead.

  • An economist for the Union of Needle Trade, Industrial and Textile Employees forecasts a flood of cheap textile imports, particularly from Indonesia.

  • An official of the Association for Manufacturing Technology says that many precision machine tools from Taiwan and South Korea that were shipped to the U.S. earlier this year and stored in warehouses are now being taken out of inventory and being sold.

  • Some trade experts warn that if steel wins its cases against imports, there will be a round of actions against the U.S. at the World Trade Organization -- where new antidumping rules haven't yet been tested.

  • As the world's economies weaken, retaliatory actions in other areas could exacerbate global trade tensions.

With currencies of some Asian nations and Russia 30 percent to 50 percent below their levels of a year ago, ailing nations likely will try to increase exports to the U.S. as they try to sell their way out of financial difficulties.

Source: Robert S. Greenberger, "Administration Fears Other Industries May Join Steel's Cry for Trade Protection," Wall Street Journal, October 19, 1998.

For more on Tariffs and Antidumping Rules http://www.ncpa.org/pd/trade/trade8.html


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