Tit-for-tat protectionism
Recommend on Google+
More protectionism trade wars over the New Year, as the U.S slapped China with another trade penalty hitting Beijing with anti-dumping duties on $91m of steel grate imports. Most Chinese producers of steel grating will now face anti-dumping duties of 145 per cent, which they will have to pay as a cash deposit or bond upon arrival to the US. That rate represents how far below market value the US says China is selling its steel.
This is another in a recent spate of retaliatory trade wars between the U.S and China. The Chinese government criticised the “Buy American” provisions in the US stimulus package earlier in 2009, as well as the 35% American import tariff on Chinese tyres in September, responding in December with duties on specialty steel products from the US and Russia. It also said it would hit the EU with anti-dumping duties for carbon steel fasteners, which was a retaliation to an EU import tax on Chinese shoes.
A good history of the recent major trade disputes between China and the U.S (since Beijing’s accession to the World Trade Organization in 2001) is given here.
blog comments powered by Disqus
ECONOMICS TEACHER RESOURCE NEWSLETTER
Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.
