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Steel Protection in the 1980s: The Waning Influens of Big Steel?

In: The Political Economy of American Trade Policy

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  • Michael O. Moore

Abstract

The U.S. integrated steel industry has been very successful in securing import protection over the last 20 years. Critical to that success has been a cohesive coalition of steel producers, the steelworkers' union and 'steel-town' congressional representatives. The political strength of this coalition has diminished substantially over the last decade as the integrated steel industry has restructured and as domestic minimills have played an increasingly important role in the U.S. steel sector. In addition, an effective domestic coalition of steel-using industries acted as a critical counterweight beginning with the fight over a VRA extension in 1989. After 1989, quotas on steel were non-binding and the industry was largely unsuccessful in obtaining antidumping duties in its 1993 unfair trade petitions. These factors point to a diminished ability of the integrated steel industry to obtain special trade agreements in the future.
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Suggested Citation

  • Michael O. Moore, 1996. "Steel Protection in the 1980s: The Waning Influens of Big Steel?," NBER Chapters,in: The Political Economy of American Trade Policy, pages 73-132 National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:8704
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    References listed on IDEAS

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    1. Mussa, Michael, 1974. "Tariffs and the Distribution of Income: The Importance of Factor Specificity, Substitutability, and Intensity in the Short and Long Run," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1191-1203, Nov.-Dec..
    2. Moore, Michael O. & Suranovic, Steven M., 1992. "Lobbying vs. administered protection : Endogenous industry choice and national welfare," Journal of International Economics, Elsevier, vol. 32(3-4), pages 289-303, May.
    3. Trefler, Daniel, 1993. "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 138-160, February.
    4. Loukas Tsoukalis & Robert Strauss, 1985. "Crisis and Adjustment in European Steel: Beyond Laisser-Faire," Journal of Common Market Studies, Wiley Blackwell, vol. 23(3), pages 207-228, March.
    5. Moore, Michael O, 1992. "Rules or Politics? An Empirical Analysis of ITC Anti-dumping Decisions," Economic Inquiry, Western Economic Association International, vol. 30(3), pages 449-466, July.
    6. Rodrik, Dani, 1986. "Tariffs, subsidies, and welfare with endogenous policy," Journal of International Economics, Elsevier, vol. 21(3-4), pages 285-299, November.
    7. Finger, J M & Hall, H Keith & Nelson, Douglas R, 1982. "The Political Economy of Administered Protection," American Economic Review, American Economic Association, vol. 72(3), pages 452-466, June.
    8. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-985, December.
    9. Michael O. Moore & Steven M. Suranovic, 1993. "A Welfare Comparison between VERS and Tariffs under the GATT," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 447-456, May.
    10. Anderson, Keith B, 1993. "Agency Discretion or Statutory Direction: Decision Making at the U.S. International Trade Commission," Journal of Law and Economics, University of Chicago Press, vol. 36(2), pages 915-935, October.
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    Cited by:

    1. Blonigen, Bruce A. & Liebman, Benjamin H. & Pierce, Justin R. & Wilson, Wesley W., 2013. "Are all trade protection policies created equal? Empirical evidence for nonequivalent market power effects of tariffs and quotas," Journal of International Economics, Elsevier, vol. 89(2), pages 369-378.
    2. Rodrik, Dani, 1994. "What does the Political Economy Literature on Trade Policy (Not) Tell Us That We Ought to Know?," CEPR Discussion Papers 1039, C.E.P.R. Discussion Papers.

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