Despite the increased steel production within the United States, foreign imports of steel to the United States hit record levels in the past two years. In 1998, the United States had the highest steel import ever. The United States imported 41.5 million tons of steel products, up thirty three percent from the previous record of 31 million tons imported in 1997.

The combined result of numerous steel industrial policies is that the world has tremendous excess production capacity in steel. Dumping, which is sales in export markets below cost or sales below the price in the home market, is the frequent result. In response to the recent increase of steel imports, a group of major U.S. steel producers filed a petition with the U.S. Internationa

The U.S. government must negotiate forcefully with other governments concerning unfair trade. The U.S. government needs to open foreign markets to steel and steel-containing products and eliminate foreign steel subsidies. The U.S. government needs to ensure that efficient, competitive U.S. steel capacity will not be driven out of business due to excess world steel production. By imposing duties on the imports that are most heavily subsidized or dumped, the U.S. steel industry will be able to compete fairly.

An alternative approach that may be used is to limit steel imports through a Voluntary Restraint Agreement which may also preserve the U.S. steel industry. However, this approach may not be attractive for the industry because the government, not markets, determine the market shares and quota rents would go to the foreign governments or companies.

Excess world capacity, restricted foreign markets, and dumping are major problems in the world steel trade. Foreign governments are still providing subsidies to their steel producers. The U.S. steel industry is facing unfair trade practices. The dumping is causing serious injury to the U.S. steel producers and their 165,000 employees.

In addition to this, subsidies cont

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Approximate Word count = 836
Approximate Pages = 3 (250 words per page double spaced)