great video, really well explained, made some notes from it to help me in my a-level economics exam in the topic of protectionism;
Anti-dumping When a country sells below their costs, or they sell below what they are selling in their home market. Generally a tariff is imposed upon the country. There is a very analytical approach to investigating whether dumping is being carried out by a country as it can often be very hard to detect as the costs of firms are no made readily available. For example, the European Union had a large surplus of food items, due to the Common Agricultural Policy. These goods were then sold very cheaply – ‘dumped’ on other world markets. This causes big problems for farmers in these countries because they are undercut, prices fall and they lose income. Therefore, governments are keen to take measures against the dumping of goods.
Counter vailing When foreign countries subsidise industries in terms of taxes or other methods, which would unfairly disadvantage other countries Over the last 50 years in the USA there has been many anti-dumping and counter-vailing, for example China had a tariff of 500% India was 30%
Section 201When imports from all countries are causing financial harm on a domestic industry and in that case the 201 would be enacted, then all imports from any country would not be allowed. For example back in 2002 the steel industry did have this 201 that was put in place and for a year and a half no imports of steel were allowed in to help the domestic steel industries go get back on their feet and get out of bankruptcy and back in business
Section 301When a foreign country violates and existing trade agreement. In the USA this gives the president authority to enact tariffs and if he deems necessary, guidance from the international trade commission and the department of commerce
Section 232Gives the president authority to protect the national security. If there is any harm to the national security the president has the ability to take the steps to do that. This was implemented in 2018 where steel imports got given a 25% tariff and aluminium of 10%
Impacts Short term – dramatic increase in the price of steel globally.Long term – uncertain
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.