Dumping of Steel Essay

The market size is shrinking because of the increase in competing international steel companies. The number of rivals in America is declining due to higher labor costs than in foreign countries. There is a very fast pace of technology in the steel industry and it seems that the company, that obtains the newest technology, flourishes. This is due to the difficulty in lower costs of steel production. Better technology is one of the only ways to decrease costs because labor is pretty much at a set cost and all that is left is the cost of iron and making the steel. If a

As mentioned in the case the main problem is the excess of steel in the steel market. Right now foreign steel is being dumped in the US. This results that supply exceeds demand which results off course in decreases of profit for many steel companies. This gives a lot of pressure to the companies and most of them are not able to survive the pressure and

Foreign producers of steel began to use an underhanded industry tactic known as “dumping”. According to Dale Hathaway who wrote, Can Workers Have a Voice?? The Politics of Deindustrialization in Pittsburgh, “dumping” is the sale of foreign goods within the United Stats at prices below the cost of production. As a result, the price of domestically produced steel far surpassed foreign produced steel and American industries turned to foreign sources for steel. Other factors that caused Pittsburgh to lose its domination of the steel industry were the rising cost of U.S. labor, the industries’ failure to modernize Pittsburgh’s steel making process due to the high costs of such implementation and finally, the escalating of steel substitutes such as plastic and fiberglass. Together these factors led to the destruction of the steel industry in Pittsburgh and the surrounding areas.

We have all heard this joke. Only now the horse has been replaced with consumers of steel in the US steel industry. Why? Many companies in our economy that use steel as an input to produce their goods are staggering due to recent extraordinarily high steel prices. President Bush dropped a tariff on imported steel on Thursday March 4th; according to basic economics, this cancellation of the steel import tariff should have dropped the price for US domestic consumers. Unfortunately though, that hasn't happened. Steel prices are currently at record highs and many forecast even higher prices to come. This puts huge pressure on small businesses that are dependent on steel for their well being. With higher prices

According to the World Trade Organization, or WTO, dumping occurs when a foreign corporation sells a product at a price that is less than the corporation sells it in its own country (Boyes, 2012, p. 170). As a consumer, I am well aware of the economy and I am always looking for products at a good price; however, when it comes to dumping, there are both advantages and disadvantages. The advantage is when a country sells products they manufacture at a lower price, it does provide employment for residents of their country; however, the company must take a loss on the production of a product in order to boost their advantage in that particular market. Further, dumping can be used as a way to take over a market in another country, attempting to put the

We covered the Nontariff Barriers and the Political Economy of Protectionism on Chapter6 in the class. “Dumping is a one of example with the Nontariff barriers to trade which is the effects of barriers to trade

Hazardous waste and its proper disposal have become a major sociological problem today due to its capability of contaminating the area in which we live and its potential to be lethal to all living things. In order for the United States and the rest of the world to save itself from a potentially life threatening problem they must fix the causes which lead to the improper disposal of hazardous wastes and like materials. Some reasons that hazardous waste has become a problem in the United States today is due to the breakdown in enforcing laws for the proper disposal of such wastes, a lack of initiative on big companies behalf to spend money on proper disposal, and the ease of disposing of such wastes illegally.

Now finally we can see the dynamics between protectionism and the concept of Anti-dumping. “Dumping, the practice of selling goods in foreign markets at lower prices than you charge for them in your home market is the protectionists ' favorite bogeyman.”(The Wall Street Journal, 2007).For e.g.: The EU sold a lot of its excess food produce from the common agricultural policy to the world market for very low rates. This in turn affected the farmers in other parts of the world as that changed the market prices and reduced it drastically. (Regine, 2012)So we can see here how dumping affects countries. Generally a nation supports anti- dumping as it wants to protect its domestic industries and hence anti- dumping can be looked at as a protectionist measure. (World Trade Organization, 2013)

Nucor Corporation is the largest manufacturer of steel and steel products in North America. The worldwide industry in which Nucor competes had record years of crude steel production in 2010 and 2011. Steel making capacity worldwide was approximately 2,090 million tons in 2011, resulting in a 2011 capacity utilization rate of 80 percent versus just 75 percent in 2010. The demand for steel mill products had grown 5.5 percent annually since 2000, but between 2000 and 2011 there have been periods of both strong and weak demand. Weak demand caused over supplied conditions in the steel industry worldwide and allowed Nucor to expand via acquisition.

Too many questions have been asked if dumping implies unfair trade practices. Recently, disputes over dumping make it difficult to decide whether or not we should allow this activity to enter our country. Many of us are equally familiar that more foreign imports mean more jobs are being destroyed in American industries. Because of this particular reason, WTO and GATT members have worked together to see if there is a relationship between dumping and unjust trades. In their study, some have discovered that dumping benefits the economy and helps increase competitions among various industries in the U.S. However, there were also some others who took the opposite side by arguing that dumping is an

A number of disciplines are alike to Anti-Dumping Agreement. Countervailing duties must be charged after the importing nation has led a detailed

In the past, Anti-dumping duties have been distinguished from other forms of administered protection by the trade problem they were used to remedy. Anti-dumping duties were a government’s remedy for

In international economy, trade agreement was made to gain fairness between the involved countries. Thus, the World Trade Organization (WTO) is established to protect these agreements and serves consequences for those who violate the agreement. Dumping is one of the examples of violation of the agreements. WTO defined dumping as imported goods in the market of the importing country with price less than its normal value (Trewin&Bosworth 1999, p.134). From one perspective, to protect local producers from dumping, the government imposes anti-dumping measures on imported goods. From another perspective, the anti-dumping measures will cause less incentive for local producers to produce efficiently; thus, it is important to avoid using

A country’s imports only partially measure the market potential for a product. A product might be imported with the intention to sell at stores like Target Stores, but because of various reasons, the product may not have done well in those markets and ended up in liquidation and sold at a Dollar Store. Reasons such as poor marketing efforts, lack of foreign exchange may have made it difficult to initiate a roll-out of the product, the expense of transportation of the product as well as duties and the inevitable markups that imports incur (304).

In my own perspective, the definition of the like product in WTO anti-dumping law should be reformed regarded to several reasons such as: