Abstract:
The March 2002 decision by President George W. Bush to impose tariffs on some imported steel capped a long-running campaign by the US steel industry and its unions for assistance in dealing with surges of low-priced imported steel, often said to be sold in the US below its cost of manufacture. The Bush decision came as a surprise to many convinced that a free trade-oriented administration would not adopt measures likely to be viewed as protectionist. This case provides definitive historical context for those seeking to understand the Bush decision. It uses the long-running dispute over whether steps should be taken to limit the quantity of steel imported by the US as a window on the wide range of laws, factors, and players who influence the making of American trade policy. The case traces the steel dispute through the late 20th century, with particular focus on the Clinton administration. It provides a primer on trade laws, particularly the roles of the Commerce Department, which determines whether illegal dumping (selling below cost of production or home market price) of imported goods has occurred, and the International Trade Commission, the quasi-judicial federal agency which rules on whether imports have injured a domestic industry.
Learning Objective:
This case provides definitive historical context for those seeking to understand the Bush decision. The case traces the steel dispute through the late 20th century, with particular focus on the Clinton administration. It provides a primer on trade laws... More broadly, however, this is a case about how the American political system handles trade issues; it examines the confluence of lobby groups...
