Steel Case
...dent Bush was win support for trade in Congress and by the people for the next elections. What is the likely impact of these measures for a) the US Steel industry; b) the industries using steel in the United stated (automotive parts, for example); c) the final consumer. These measures will help the US steel industry for the some time (3 years) to restructure themselves and to be more competitive. The industries in the US may suffer, as they will have to purchase steel from the US steel makers or with imported steel + 30% (approximate tariffs). The final consumer may not see much difference or any since the steel impact on the final product may be little. Rest of the world Why are the measures very unpopular around the world? Which countries are exempted from the measures? Are the measures WTO conform according to the European Union, Korea and Japan; explain why? The measure taken by the Bush administration were unpopular firstly because it is natural that making things expensive will give this sort of reaction. Also in this case some countries were not imposed these restrictions which led them to believe that this was biased. The countries, mainly developed countries, did not fully understand the full impact this may have on their industry. Once this research was done they realised that the impact is not great as thought off but very little reduction of revenues. The threat is however that countries which cannot export to US will try to export more to the EU, and which may have negative effects to the EU as it had done for the US steel industry. The countries which are exempt from the US restrictions are Mexico and Canada, who are NAFTA partners. This exclusion was probably also because they did not want to have hurtful relations with them. Because the economies are inter-linked in that region. Developing countries should also not have to be harmed or slow their developing econmies since their economies may greatly depend on these revenue. How strongly is the European Union affected by the measures? What measures did the E.U. already take? What potential problems do these measures address? Are they WTO conform? What are their advantages and disadvantages? Initially the E.U. thought that they will be greatly harmed but once they did some research they realized that they were not disturbed. The E.U. themselves increases or put some tariffs to counter the US move. These tariffs were not on steel but ot...