EVALUATION OF THE EFFECTIVENESS OF PROTECTIONISM POLICY TOOLS IN OVERCOMING THE CRISIS OF EXCESS CAPACITY IN THE FERROUS INDUSTRY

Abstract

The article focuses on strengthening of protectionism policy and on trade defense measures, which significantly influence the current global steel market situation. The detailed analyses of the type, product scope and potential effect on international iron and steel market was conducted. The characteristics of the crisis period of exceed capacities problem caused by structural disbalance of global supply and demand in combination with the further steel products consumption decline are presented in the article. The particular focus is on the effectiveness evaluation of protectionism policy on the national level taken the US steel market as an example. The study concludes that protectionism policy of 2017-2019 not only has not solved the global problem of steel exceed capacities, but also escalated national level challenges: lack of motivation of local manufactures to decrease emissions, high unemployment rate and consumer product prices growth. The core outcome of the article is that unbased import trade barriers in steel sector are ineffective for global and national problems solving and that the only way is to implement coordinated actions by the major global steel market players.