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Tariffs and steel: US safeguard actions *
Author(s) -
Greenville Jared,
MacAulay T.Gordon
Publication year - 2005
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2005.00293.x
Subject(s) - safeguard , order (exchange) , competition (biology) , international trade , supply and demand , trade barrier , business , supply side , economics , international economics , microeconomics , finance , ecology , biology
A multiproduct spatial equilibrium model of world steel trade is presented in this paper. The model is used to analyse the impacts of the safeguard trade barriers brought about by the USA in order to protect their domestic industry from the so‐called unfair competition. Emphasis is placed on the likely effect on the Australian industry and possible policy responses available to the industry. A case study is made of Australia's three largest export products; namely, slab, hot‐rolled and cold‐rolled steel, which share some substitutability in supply and demand because of the nature of the industry. As a result of the safeguard barriers to steel trade, world steel prices fell and trade shifted away from the USA to other importing regions.