Steel tarrifs.

BillieTheBot · December 2003

As you all may know the US introduced some illegal steel import duties a while ago, well they have been lifted.

Heres the story;

http://news.bbc.co.uk/1/hi/business/3292191.stm

Former Member · December 2003

Great news at many levels.

Our steel industry will benefit from the removal of the tariffs.

The economy on both sides of the Atlantic will also benefit in general by avoiding trade wars and boycotts.

And sweetest of all, the EU has for once shown some muscle and forced Dubya into a humiliating climbdown. It might even damage his chances of re-election, which would be a welcome and unexpected bonus for the human race.

Former Member · December 2003

I do think its slightly odd that this didnt make the news really at all, I havent heard anything about it and only saw it as a sideline on their website.

Former Member · December 2003

There have been some rumblings here but nothing too spectacular. Perhaps much of the British press find itself unable to cheer for a EU victory against the Master.

I reckon the news will have been given a better treatment in the Continent.

It is certainly much bigger news in America, where the steel industry is said to be furious at the decision.

Former Member · December 2003

Originally posted by Aladdin
And sweetest of all, the EU has for once shown some muscle and forced Dubya into a humiliating climbdown.

Don't forget that the WTO told him that he must, without that he could have just continued on his merry way, whether the EU showed balls or not...

Former Member · December 2003

Interesting this one.

The WTO is generally seen as the lapdog of the developed world and more specifically the US.

What will peoples perceptions of it be, now that is has forced the US to bow to its whim also?

Former Member · December 2003

It may be reported to be the WTO which forced the issue, but note that the WTO condemned the tariffs when they were imposed and have been pressuring the Bush admin for two years to rescind them without avail.

The threat of reciprocal EU embargo on over two billion dollars worth of US goods, notably citrus fruit from Florida (ring any bells folks?) was what forced the issue. In the runup to election year, Bush cannot afford to maintain the steelworkers votes only to lose the more substantial votes of the broader interests at risk from an EU embargo, especially in Florida!

That's the long and short of it.

Former Member · December 2003

I don't think Dubya was too concerned about what the WTO said, so long as no-one dared to take action against the US. And outside the EU I can’t see anyone doing that.

It was the EU real and imminent threat of sanctions that tipped the balance and made Bush see sense.

However I will concede that the WTO ruling that the tariffs were illegal was still very important to the whole issue. If the EU had imposed sanctions without a WTO backing the US government might have been more inclined to retaliate further.

Former Member · December 2003

Originally posted by Aladdin
If the EU had imposed sanctions without a WTO backing the US government might have been more inclined to retaliate further.

Precisely.

The WTO backing and declaration a couple of weeks ago is what made the ultimate difference.

Former Member · December 2003

I didnt say that the WTO ruling wasnt an important factor, However one must assess the standoff in term of election year priorities. In this, Bush could not afford to engage in a trade war with not only the EU but Japan and a host of smaller nations as well and thereby give ample fodder to his opponents on the falsehood of his claims to being the "free trade" President.

Those claims are indeed false anyways, but a full scale EU/Japan embargo would only serve to emphasise that reality as further export sectors were made to suffer.

Steel tarrifs.

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