and area e are gained by the government tariff revenue. But areas a, b, c, and d are the consumer surplus losses. While one might not think a lot about the consumer surplus loss, it can have a grave impact on the US economy. The automobile industry, construction industries, and the food packaging industries are all other large industries that consume a fair amount of steel. Thus, they would suffer from the increase in price. Griswold in his article "Industry Sets Steel Trap for US Economy" feels that domestic car buyers would be hurt by this increase in steel prices. Also, he believes that an increase in steel prices would make it tougher for huge industries such as General Motors and Caterpillar to compete in world markets. Plus, as the graph indicates, the US as whole incurs a net loss of b and d. This loss may or may not be made up with the net gain of e, the terms of trade gain. While tariffs might benefit the steel industry, they hurt steel consuming industries. They may or may not hurt the US in general. Although most developing countries believe that antidumping can be legitimate in many cases and would like to use them more for their benefit, they have been vocal about their beliefs that developed countries unfairly are targeting them for antidumping measures. Speaking of behalf of developing countries, trade representatives from Brazil stated in a WTO General Council meeting: "In the period 1987-1997, developing countries were responsible for only 31% of investigations opened. At the same time, they were affected by 62% of the investigations. This situation is even less acceptable given the concentration of measures in some specific sectors where developing countries have developed a competitive industry. One major trading partner [a reference to the USA], for example, in the last ten years, has opened 173 investigations in the steel sector, nearly half of all investigations opened by this Member"( Raghavan ). Thus, developing...
