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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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    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. Bruce A. Blonigen & Benjamin H. Liebman & Justin R. Pierce & Wesley W. Wilson, 2012. "Are all trade policies created equal? empirical evidence for nonequivalent market power effects of tariffs and quotas," Finance and Economics Discussion Series 2012-17, Board of Governors of the Federal Reserve System (U.S.).
    3. Michael O. Moore, 1996. "The Rise and Fall of Big Steel's Influence on U.S. Trade Policy," NBER Chapters, in: The Political Economy of Trade Protection, pages 15-34, National Bureau of Economic Research, Inc.
    4. 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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