> Behalf Of Julia Thompson > I don't think this is a good idea. > > 1) I'd like to hear from everyone here who has an opinion, are > you for or against this? >
Well, this all sorta follows on from Russell's and my comments about US farm subsidies of a couple of weeks back. Once again Australian (and other) producers get shafted by our close friend and ally playing for domestic political gain. Comments by Aust Foreign Minister (not someone I'd normally quote ;-)), and WTO challenge being mounted: "It sends a very negative message not just to friends and allies but also to the developing world," he said. "I am unashamedly pro-American, but this situation will be exploited by critics of the US." ...the embassy is pointing out that BHP's exports go to west coast mills, which could not buy from east coast producers at comparable prices due to transport costs. America's allies have united in criticising the tariff move, accusing the US of hypocrisy and of putting politics before its free-trade principles. Full article at http://www.theage.com.au/articles/2002/03/08/1015365746676.html There have been a number of articles in Australian media, naturally enough. Again, a case of "do as we say, don't do as we do" from the US. Basically, Australia's steel industry has gone through the hell of restructuring over the last couple of decades to compete with, first Japan, then Korea and lately China. We've had major steel industries in at least 2 cities, Whyalla and Newcastle, all but wiped out with production shifted either to mini-mills or the last major coal/steel town of Wollongong. The steel/coal-based workforce has dropped by tens of thousands in that time. We know the pain that the US has to go through cos we've already done it. And it now doesn't help, of course, that suddenly one of our significant markets has decided to throw tariffs on our nice competitive exports. The money to be spent on US government tariffs would far better be spent on employment initiatives and retraining schemes for the workers involved - what we did and do here - so that the workers have something tangible out of the restructuring. That is, people are supported to get completely new types of work in industries with an employment future, instead of being consigned to ultimately dead ends. The pain is going to be felt at some time, regardless of what tariffs are applied now. As it stands the US government is going to throw money at a dead industry, cause artificially higher prices for all consumers of US steel goods (which includes your export markets, too), probably get a few more votes in Rust belt states come November, but will still end up with fewer people being employed in those areas over the next few years, mills and companies eventually going bust as everyone else gets MORE efficient, and a bigger problem in the end. It's the wrong way to intervene in the market. So, Julia, no support for the scheme from this neck of the woods. Cheers, Brett
