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International Economy,Protectionism,By:,case,The United States steel import restrictions of 201 clause in March 2002, 20, was set up. Steel protection ultimately relief programmes of the United States section 201 provisions on imports such as steel, long the main iron and steel, the implementation of a 3 - year tariff quota or tariff that added up to 8-30. This is by far the United States on imported steel imposed by the most serious in the history of trade restrictions.,Identify why the government uses this protectionism,Section 201 of the United States is the subject of damaged by imports of the positive adjustment of the industry . This provision authorizes the President but excessive foreign countries fair competition, by foreign imports of the same industry and cause damage to the industry through the appropriate relief measures to prevent or remedy the damage and to facilitate domestic industry the necessary adjustments.,Flaws,Referred to in paragraph 201 of the US Congress damage and threat does not give a definition, just providing some parameters, such as serious idle industrial facilities, and each Member of the Committee are free to determine in each case the definition. Is a kind of trade protection measures.,consequence,The United States is the worlds largest steel consumer, the move to Americas largest steel suppliers the European Union, the economic losses caused by may have billions of dollars. South Korea, Japan, Brazil and other countries will also suffer damage as a result. In retaliation for the United States to raise import tariffs on steel, in June, the EU imposed on some U.S. goods 100 percent tariff, Mexico, Japan, South Korea, have also increased tariffs or take emergency safeguard measures. Although the WTO ruled that the United States violates WTO rules eventually, but for both the steel trade war brought huge losses, it is estimated that in 2002 alone, the EU would lose up to $ 240 million. In the past the United States to bear the loss of several hundred million dollars, while also resulted in 74,000 unemployed steel consumers, more harm than good.,Explain what inspiration you get from this case?,Trade protectionism ostensibly to protect the country from competitive harm or threat actually impeded the development of the industry. From a long-term point of view, not only had a more or less on their economic losses, are dampening the countrys industrial upgrading.,The end Thanks !,
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