I have not been following the industry seriously since the completion of the book. The nature of the global industry is that it is still plagued with excess capacity despite the massive "restructuring" undertaken in the US in the late 1970s and throughout the 1980s. Japan is also saddled with excess capacity. In general this is a problem of "mature" economies, something that even South Korea falls under. S Korea has also excess capacity in part because of its large scale newer mills, supplying a good portion to the world market. China and India are expanding their industries (China is the largest producer in the world) and will do so for the foreseeable future, mainly for domestic consumption. But additions of new capacity ultimately contribute to excess capacity.
The US industry has improved its competitiveness, no doubt but it is not always clear who is more competitive (cost figures are notorious to calculate, let alone obtain). Exchange rate movements make it even harder. The Bush adm is playing the usual domestic politics game, supporting big industry (and big labor). Section 201 means penalties for the offending countries but negotiations are long and something normally is settled before it comes to penalties. It would be hard to use this to secure concessions in WTO. It is also symbolic (but again driven by dom politics). After 911 he has to demonstrate that he is doing something for the economy, this is another way. But it is also a desperate measure in some ways (double standards and all). As you know Bethlehem Steel is bankrupt. BS is a symbol of US industrial might of the 19th to mid-20th century. Its collapse suggests that something is being taken away from under its feet. One could interpret it as an "imperialistic" posture. Cheers, Anthony xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Anthony P. D'Costa Associate Professor Ph: (253) 692-4462 Comparative International Development Fax: (253) 692-5718 University of Washington Box Number: 358436 1900 Commerce Street Tacoma, WA 98402, USA xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx On Wed, 24 Oct 2001, Rakesh Bhandari wrote: > pen-l listmember anthony d'costa has had some very important exchanges in EPW > (Bombay) about the nature of the global steel industry and the nature of the > world market today. i would be most interested in his comments on the recent > protectionist decisions handed down in the US. are they merely symbolic > gestures? threats of what the US will do if it does not get what it wants at > the WTO? bush vying for votes in states that he lost? > > RB > > > > > > -- > > > > >
