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Solution to Steel Tarriffs imposed by US - Sign long term contracts



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IPI_Marker

Hi all,
       I am really pained by the US decision to impose tarriff on steel
import. It is really disgusting. On one hand George Bush talks about
Free Trade and on another hand imposes tariff.

       There is one solution though that will work in this kinds of
situations. Those selling steel and other products to the developed
countries and know that domestic industry is lobbying for import
tarriffs should insist on getting some kind of insurance or escrow
amount in case tarriffs are really imposed. In other words, you should
pass on the cost of risk (of imposing the tarriffs) to your customers.
Thus, those countries who are not planning or lobbying for import
tarriffs will get cheaper imported items than those countries where
risk of imposing tarriffs is more.

       This will give tremendous advantages to freer countries while
penalizing those who are less free. And it will also protect the
producer country from the risk of tarriff imposition.

Regards,
Ashish


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