Steel Tariff & WTO

[moe.ron]

Analysis: Bush decision puts steel in WTO's backbone

David E. Sanger, New York Times

Published December 5, 2003 WTO05

WASHINGTON, D.C. -- President Bush had little choice Thursday when he reversed himself and lifted the tariffs on imported steel that he imposed last year.

For the first time in his nearly three years in office, the president, who has often reveled in the exercise of American power, finally met an international organization that had figured out how to hit back at the administration where it would hurt. Employing relatively untested powers, the eight-year-old World Trade Organization (WTO) authorized European and Asian nations to devise retaliatory tariffs against the United States, just 11 months before a presidential election. Not surprisingly, the Europeans pulled out an electoral map and announced they would single out products made in the states Bush most needs to win a second term.

In fact, what the WTO accomplished when it forced the Bush White House into a rare 180-degree turn was exactly what its American champions envisioned and its opponents warned about during the first big globalization debates of the 1990s. Acting as the final arbiter of the world's trade rules, it reversed the politics of protectionism, making sure that nations that protect their markets -- in the name of saving jobs -- are forced to pay a steep price.

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[kappaloo]

This comes down to .... Don't Dish it if You Can't Take it ...

[GeekyPenguin]

Man, do I love Europe sometimes.

[Kevin]

I'll bet some Al Qaeda members are hiding in France. Maybe we should invade?

[swissmiss04]

I watched the local (Birmingham) news last night. At one point B'ham was the "Pittsburgh of the South" and actually was named after Bham England because the founders wanted it to be equally productive and prosperous. Even tho our steel industry isn't nearly what it was, there is still quite a sizeable chunk of people employed in that sector. They are really worried about layoffs now that Bush revoked the tarrifs. While I don't agree that he should have put them there in the first place, I do feel like he should make some sort of provisions to protect these people's jobs. But I'm not holding my breath.

[Rudey]

Yes let's encourage companies that flood the markets with government subsidized goods from other countries to destroy industry in this country before raising their own prices. How about governments that threaten the president with tariffs that they say will hurt certain states that would be voting to him?

Get real, the tariffs were a bad idea but Europe practices more protectionism than anywhere else - from farming to champagne.

-Rudey

[kappaloo]

Originally posted by Rudey
Get real, the tariffs were a bad idea but Europe practices more protectionism than anywhere else - from farming to champagne.

If this is true - why isn't the US sending it to the WTO? It's not like the US government doesn't know the process...

[Rudey]

Originally posted by kappaloo
If this is true - why isn't the US sending it to the WTO? It's not like the US government doesn't know the process...

Because they have. Although I'm not sure the current status of all that either.

-Rudey
--Steel tariffs were retracted because of US manufacturing companies and not because of European complaining.

[moe.ron]

Originally posted by Rudey
Steel tariffs were retracted because of US manufacturing companies and not because of European complaining.

That is one of the reason. THe other reason is that if Asia and Europe retaliated, they would have gone after sensitive electorates. If you look at the propose sanctions products, it would not work for the Bush campaign next year.

[Rudey]

Originally posted by moe.ron
That is one of the reason. THe other reason is that if Asia and Europe retaliated, they would have gone after sensitive electorates. If you look at the propose sanctions products, it would not work for the Bush campaign next year.

That was an awful threat which I brought up before but at the end of the day if any and every country would like to go punch for punch with America, their economy will be completely destroyed much quicker than America's will. The threats China made were hilarious considering the fact that we import more than they do by far and if boths sides put tariffs on everything, America would still be far ahead.

U.S. manufacturing units simply have much larger lobbies than U.S. steel does. Minimills do not collaborate with big steel since they're competing with them actually and much of the steel production in the country is done through minis thus big steel is.

-Rudey
--The U.S. should have destroyed Schroeder during his election via a recession since Europe seems so bent on pursuing such threats.

[moe.ron]

Originally posted by Rudey
That was an awful threat which I brought up before but at the end of the day if any and every country would like to go punch for punch with America, their economy will be completely destroyed much quicker than America's will. The threats China made were hilarious considering the fact that we import more than they do by far and if boths sides put tariffs on everything, America would still be far ahead.

U.S. manufacturing units simply have much larger lobbies than U.S. steel does. Minimills do not collaborate with big steel since they're competing with them actually and much of the steel production in the country is done through minis thus big steel is.

-Rudey
--The U.S. should have destroyed Schroeder during his election via a recession since Europe seems so bent on pursuing such threats.

Tariff has more to do with strategic economic punch then overall. I mean, if you look at past retaliatory (sp?) tariff in accordance to the WTO, they never put tariff on items that will harm the overall economy to the country. The citrus tariff will have little effect on European or the Japanese economy, however, it will do harm to a politician.

[Optimist Prime]

Thanks Europe!!!! Vive le Internationle

[Optimist Prime]

Before anyone reacts to the above post, I think its funny that when the Eco-Ararchist Warriors in Black rioted seatlle when the WTO was there a few years ago and everyone was freaked out they hated the WTO so much, but now the same people are freaked out the WTO is doing something like this. Cause and effect. I see it clearly, why can't the rest of you?