The reality is that the industry has benefited unfairly from trade barriers for decades and continues to enjoy advantages that are not available to other U.S. industries facing import competition. Meanwhile, precious little attention is being given to the fact that the array of new protectionist proposals now in the works will seriously threaten the ability of U.S. manufacturers to obtain imported steel. None of the proposed legislation would increase general economic welfare, and much of it would be in violation of U.S. international commitments. Sensible members of Congress should ignore the industry's demands and refuse to meddle in the steel market. This bill would limit steel imports from all nations to 1997 levels on a monthly basis for a period of three years.
Quotas are one of the most damaging forms of trade restrictions.
They redistribute wealth from consumers to domestic producers and to those foreign producers lucky enough to get quota rights, but they do not provide the U.S. government with any tariff revenues. This bill would deprive the U. S. economy of all the gains from steel trade and offer only temporary benefits to domestic steel companies. It would, in short, be a disaster. This legislation would create a permit and monitoring program that would require all steel importers to register with the Commerce Department and report information on the cost, quantity, source and ultimate destination of all steel shipments. More significant, the bill would amend the Trade Act of 1974 to make an injury finding easier under Section 201.