But on trade policy formulation, it seems that the right hand doesn’t always know what the left hand is doing. Last year, while magnesium imports from China were subject to U.S. antidumping duties, the Obama administration launched a WTO case against China for its restraints on exports of raw materials, including magnesium. That’s right. The U.S. government officially opposes China’s tax on exported magnesium because it imposes extra costs of U.S. consuming industries, but it insists on enforcing its own antidumping duties on magnesium imported from China despite those costs.
Even if Ja Hoon Chang and the rest were right, that infant industry protection works (they\’re not) then we\’d still have whatever the trade policy is being created and enforced by the idiots in the government.
And that just ain\’t gonna work, is it?
(We have some interestingly similar hijackings of EU import tariffs: there\’s only one EU producer of rhenium and yes, there\’s an import tax on it. And no, they\’re not an infant industry nor do they face unfair competition. Just have a good lobbying office in Brussels. )