Tariff Measure Set to go to President

Top 2. Jun 24, 1999 11:32 AM

» BJohnson - Steel Quotas

The U.S. Congress passed legislation (HR 975) in March that would impose U.S. import quotas on steel. Like was the case for nearly 20 years, the legislation would limit the amount of steel that can be imported into the U.S. The last time the U.S. steel industry was under such protection was from 1969 through 1992 (with a few months of no protection throughout this period).

Specifically, the legislation would force all importers of steel to notify the U.S. Commerce Department of their intention to import the steel, from which country the steel is being imported, how much they are paying for it, and other proprietary information.

The Commerce Department would then need to provide permission for the transaction to occur. Steel industry proponents say the legislation is necessary because it will help stop foreign countries from selling their products in the U.S. market at prices lower than it cost to produce them.

At the same time, the U.S. steel industry is aggressively pursuing antidumping charges against such countries as Russia, Japan, and South Korea, for supposedly dumping their steel in the U.S. market.

Now, the U.S. Senate is taking up the issue. Steel industry proponents are attempting to vote on the House legislation. However, opponents have begun to filibuster the measure. This means that in order to end debate on the issue, 60 Senators must vote to evoke "cloture," which would officially end debate and force a vote.

While Republicans are pushing the measure, the White House has threatened to veto the legislation. Moreover, there appears to be a growing understanding in the Senate that the U.S. already has done enough for the steel industry. Some policymakers point out, for example, that the Senate recently passed legislation that would provide some $1 billion in loan guarantees for the U.S. steel industry.

In the meantime, the Clinton Administration will pursue antidumping investigations against countries like Japan while showing no inclination to impose import quotas.

-- posted by BJohnson

Top 3. Jun 24, 1999 11:43 AM

» BJohnson - Brian

Sorry it took so long to get back to you.

I basically copied in this week's piece so I can refer to it.

To answer your question, I think that the tariff relief is just a bump in the road in an otherwise decidedly greater move toward more protection, as it seems is the case with the steel import quota bill.

-- posted by BJohnson

Top 4. Jun 29, 1999 1:22 AM

» not_him_again - Thank you Bryan, and I certainly appreciate the effort, no matte

Thank you Bryan, and I certainly appreciate the effort, no matter how long it took. I am always interested in your take on these matters.

-- posted by not_him_again

Top 5. Jul 1, 1999 1:29 PM

» GeraldS_2 - Years and years of growth:

Recessions are a thing of the past ! ! ! ! ! ! !

In exporting our industry, we have also exported our recessions ! ! ! ! ! (Because recessions are the result of overproduction and under demand. Ergo, no production, no recession) Why didn't someone think of this before? ? ? ? ? Let the Japanese, Asia, Mexico, and the third world contend with recessions while we (at least some of us) enjoy a booming stock market and the resulting federal revenue surplus.

The boys in Washington have it all figured out and they are certain that they have finally arrived at the solution to the problem of the unions getting too big for their briches. Of course poverty is on the rise, but those people don't vote anyhow.

-- posted by GeraldS_2

Top 6. Sep 16, 1999 7:16 AM

» GeraldS_2 - Current Deficits

It seems like each month sets a new record current deficit. Can this go on forever? If not, where and when will it end?

Seems as though this thing they have been calling "free trade" is not free trade at all. A better name has been adopted: now they call it globalism.

Seems to me that if there were really free trade, when a nation's imports exceeded its exports, the value of its currency would fall, resulting in that nation's products becoming cheaper and its imports becoming more expensive. If there were truly free trade, a current deficit or surplus would be a very temporary situation because the imbalance would automatically correct itself.

But this hasn't happened, the deficit keeps growing. Why?

Because we are subsidizing imports and penalizing exports by artificially propping up the dollar. This is accomplished partly by high interest rates attracting lots of foreign money. But it is also a runaway process. Our stock market pulls in foreign money which causes stock prices to go even higher.

Now the president and our Republican congress are boasting about the good times and even speaking of a projected budget surplus! Well, the strong dollar means we have the rest of the world working for us producing consumer goods more cheaply (in dollar terms) than we can produce it ourselves. Great. Can it go on forever?

Nope. This morning the dollar is down to 103 yen. Foreign interests are wondering if they should begin to pull their money out of our stock market bubble. Stay tuned for the next thrilling episode.

You might want to check out,

http://epinet.org/

Choose "Trade and Globalism" and then "The Ticking Debt Bomb" by Robert A. Becker.

-- posted by GeraldS_2

Top 7. Sep 16, 1999 10:37 PM

» not_him_again - A most interesting link, thanks Gerald.

A most interesting link, thanks Gerald.

-- posted by not_him_again