Analyses the American Steel Industry\'s actions with respect to antidumping

1. American Steel
“The King of Antidumping”
Case Analysis
Sai Chandan
IIM Shillong
dsaichandan@gmail.com

2. The Players
Foreign Country
Domestic Country (US)
Domestic Company Foreign Company

3. SWOT – Foreign Company
• =>Competitive Pricing => Low priced Raw materials
Strength • =>Support from National Governments => Technology
• => Short term strategy
Weakness
• => US Companies dependency on Raw Steel Slabs, Immune
Opportunities to anti-dumping => Opening up New Market
• => High antidumping duties (up to 369%) leading to market
Threat wipe-out

4. SWOT – Domestic Company
• => Cooperative US Trade Laws => Lobbying
Strength
• => Poor decisions by managers => Lagging Innovation
Weakness • => Uncompetitive High Wages
• => Win back market share => Foreign companies’ price
Opportunities sensitivity to Antidumping case suits
• => Loss of World Market Share => Monopoly
Threat

5. SWOT - Countries
Domestic Country Foreign Country
• Competitive industry
• Legislation powers • WTO directives
Strength Strength
• Weak domestic companies • Vulnerability to their legislation
Weakness • WTO directives Weakness
• Can influence decision making by
• Self reliance Opportunities threatening trade strains
Opportunities
• Monopoly of foreign player • Effect of counter dumping
measures on domestic business
Threat • Retaliation by the country Threat

6. Data
Average GDP
Steel applied Growth
Filed AD Exports, import tariff rate, x
Year Cases Affirmative '0000 T rate, x 10 10
1992 89 38 39.32 69.1 34
1993 36 11 39.42 67.3 29
1994 59 29 46.09 70 41
1995 18 9 31.13 61.4 25
1996 13 9 50.78 59.3 38
1997 23 14 42.25 59.5 45
1998 33 22 90.05 60 44
1999 50 20 98.58 52.6 49
2000 35 18 73.75 51.7 42
2001 92 40 62.17 50.6 11
2002 35 12 67.72 52.3 18

7. Correlation
Antidumping
120
100 98.58
Filed AD Cases
92
89 90.05
80
Affirmative
73.75
69.1 70
67.3 67.72
61.4 62.17 Steel Exports, '0000 T
60 59 59.3 59.5 60
52.6 51.7 52.3
50.78 50 50.6
49
46.09 45 44 Average applied
41 42.25 42
40 39.32 39.42 40 import tariff rate, x
38 38 10
36 35 35
34 33
31.13
29 29 GDP Growth rate x 10
25
23 22
20 20
18 18 18
13 14
11 11 12
9 9
0
1 2 3 4 5 6 7 8 9 10 11

8. Recommendations
 Domestic Company
 Import activity is on a rise - File as many AD’s as
possible.
 Attempt to upgrade the competitiveness.
 Foreign Company
 Adjust price in domestic market
 Show restraint - long term strategy – Cartels
 Make JVs, Alliances with domestic competitors.
 Exploit Raw Steel Slabs dependency- bundling products

9. Recommendations
 Domestic Government
 Choose between domestic (read self sufficiency) and
foreign (read competitiveness), favoring domestic.
 Don’t deter foreign companies.
 Utilization of duty funds in same industry.
 Foreign Country
 Constantly put the domestic country under pressure by
retaliation tactics
 Use WTO regulations as deterrents

10. Learning
Genuine
Antidumping
Cases

11. References
• http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.
ZG?page=3
• Exploring the patterns and determinants of U.S.
antidumping actions against Latin American
imports, 1980-2004, Robert M. Feinberg
• http://www.nationsencyclopedia.com/WorldStats/UNC
TAD-import-rates-other-goods.html
• Bea.gov
• The Rise of U.S. Antidumping Activity in Historical
Perspective - Douglas A. Irwin
• And of course “Google” and “Wikipedia”