By rolling back the illegal steel tariffs, the Bush administration has not restored its credibility as a supporter in free trade. However, it has given the World Trade Organization (WTO) more legitimacy by demonstrating that even the largest economies with the most political clout in the world still have to follow WTO rules. In addition, the removal of steel tariffs will probably hurt Bush's support by both steel-makers and steel-consumers, although both have gotten their ways (steel-makers got a tariff for 20 months and steel-users got the tariff removed 16 months earlier than the administration had planned). However, both have also been angered during the conflict over the tariff. The most important aspects of the conflict over the tariff for steel-makers is that it was removed too early and that Bush backed down to "European blackmail" while steel-users and their workers are still upset that the tariffs cost jobs. Furthermore, even though Bush removed the tariffs, it was forced upon him and he should not be given credit for their removal. Despite Bush's claims that the tariffs were successful, it should be kept in the front of voters minds that Bush both strayed from his stated position in favor of free trade (as he has on other issues, such as the current quotas imposed on Chinese-made bras) as well as the detrimental economic effects of the tariffs during their 20 month life on steel-using industries. On the upside, however, the WTO has, after 8 years, has made a definitive move towards legitimacy that will be beneficial for making future moves towards free trade, which will, in the end benefit both developed countries and less developed countries.

Back to Commentary Home
©2003 Richard B. Goud, Jr.
Updated on 5 December 2003 at 18:36 PST