https://padlet.com/gowrik1/Bookmarks Made with charisma en-us 2022-03-07 06:00:00 UTC 2023-02-13 05:24:48 UTC hello@padlet.com gowrik1 https://padlet.com/gowrik1/Bookmarks/wish/2478358944 Should the UK government rescue Tata and keep steel manufacturing in the UK?]]> 2023-02-13 04:21:11 UTC https://padlet.com/gowrik1/Bookmarks/wish/2478358944 gowrik1 https://padlet.com/gowrik1/Bookmarks/wish/2478359331 Discuss the arguments for and against the EU / UK imposing anti dumping tariffs on Chinese steel?]]> 2023-02-13 04:21:35 UTC https://padlet.com/gowrik1/Bookmarks/wish/2478359331 gowrik1 https://padlet.com/gowrik1/Bookmarks/wish/2478395964 This is a difficult decision for the UK government.  The British steel industry has been in almost continual decline for a number of decades, dependent on government subsidies to survive.  As a general rule the UK manufacturing has been in decline throughout the same period.  The UK industry that has flourished has been those businesses that are very capital intensive and often those that sell luxury products.  Realistically it seems unlikely that the UK steel industry can compete with products produced in low wage economies such as China. Should Britain really be diverting precious resources towards the production of goods, where they do not enjoy either an absolute or competitive advantage?  In addition firms that are reliant on steel for their raw materials e.g. the car industry will always prefer to purchase cheaper Chinese steel than more expensive steel made in the UK. 

On the other hand for the UK, a major industrial nation, to lose such an important industry would be a significant blow to its self esteem.  It will also force many industries which use steel products to purchase their steel from overseas, increasing the nation's dependence on other nations.  Countries which could simply cut off supply in the future or at least raise the price substantially.  Importing steel products from overseas will also further increase the UK's trade deficit with the rest of the world.]]> 2023-02-13 05:12:17 UTC https://padlet.com/gowrik1/Bookmarks/wish/2478395964 gowrik1 https://padlet.com/gowrik1/Bookmarks/wish/2478401806 The UK as WTO member must abide by the laws laid down by the organisation.  The World trade organisation prohibits the imposition of trade barriers against other WTO members and China is a member of the organisation.  However, there are a number of exceptions to this rule.  For example the UK could justify imposing a tariff against Chinese steel imports on the grounds of health and safety, national security or if they could argue that Britain's steel industry qualified as an 'infant' industry.  It is very unlikely that any of these would apply to the UK steel industry.  This leaves the UK with only one opportunity to legitimately impose tariffs on Chinese steel products.  This being if they can prove that the Chinese government were illegally dumping their steel on the UK market.  This could be a valid argument as a number of other nations, in the WTO, have made similar accusations against China - that they are dumping their goods and services on world markets, at below the costs of production. This means allowing their domestic firms, in this case the Chinese steel industry, to export their products at below production cost, by providing domestic firms with government subsidies.  Therefore, if the UK can make a convincing case against China then the WTO will allow Britain to impose an anti dumping tariff on Chinese steel products, equal in size to the level of subsidy that the exporting Chinese steel firm has enjoyed. 

However Britain should think clearly before imposing an anti dumping tariff on Chinese steel products. As much as protectionist measures such as tariffs and quotas would be popular with the UK, looking at the microeconomic level, it is highly possible to cost of production will increase in the industries that were previously dependent on the cheaper Chinese steel. This may have a major ripple effect for some manufacturing companies like Heinz who rely on steel for packaging of cheap necessity items. ]]> 2023-02-13 05:21:02 UTC https://padlet.com/gowrik1/Bookmarks/wish/2478401806