Newspaper Article

A QUID PRO QUO FOR STEEL

Stuart E. Eizenstat Stuart E. Eizenstat, a lawyer, was President Jimmy Carter's chief domestic policy adviser

1984

Overview

American banks. Besides imports, there are other structural causes for the industry's crisis, among them outdated facilities and excessive production costs. But in an election year it is asking too much for the President to deny any relief with steel workers strategically situated in states with large electoral votes. The Administration may feel a greater political need to fashion a package aimed at limiting steel imports from third-world countries than it did in recently denying relief to the similarly distressed copper industry, which has less clout. Republican and Democratic Presidents have provided trade relief to various industries because of the enormous economic and political implications of watching major industries decline, throwing thousands out of work. Despite their genuine attachment to a free, open and competitive world trading system, [Ronald Reagan] and Jimmy Carter have provided import relief for such industries as motorcycles, textiles, autos, footwear, color television and specialty steel. But none of the aid was ever accompanied by conditions for restructuring the industries that would have strengthened them and avoided the need for further import relief. Only unilateral open-ended Government handouts were involved. Nothing better illustrates the problem of granting trade relief without conditions than the Carter Administration's steel policy.

• Publisher: New York Times Company
• Subject: EIZENSTAT, STUART E / IMPORT QUOTAS / INTERNATIONAL TRADE AND WORLD MARKET / PROTECTIONISM (TRADE) / STEEL AND IRON