Costs to American Consuming Industries
of Steel Quotas and Taxes
By Dr. Joseph F. Francois and Laura M. Baughman
April 30, 2001
This major new study, commissioned by the CITAC Foundation and conducted by the Trade Partnership, quantifies the negative consequences for steel-users, taxpayers and the economy as a whole of HR 808, The Steel Revitalization Act, proposed by the steelworkers and their allies in Congress. The study also examines the economic impact for consuming industries of quotas on finished steel imports -- the likely result of an investigation under Section 201 of the Trade Act of 1974.
According to co-author Laura Baughman, "The results clearly show that special protection for the steel industry will cause significant damage to the economy as a whole. If indeed restrictions provide any real relief to the domestic steel industry and its workers -- and we think that's questionable -- it would be very limited in scope and have no lasting impact on their ability to compete globally, which they must do to survive."
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