The Politics of Steel Trade1. Does the World Trade Organization in this case represent a loss of national sovereignty for the United States? Why do you think the WTO sided with the European Union? I don't think the Work Trade Organization represents a loss of US national sovereignty. The WTO in this case is simply doing its job: supervising international trade and enforcing the agreement signed by all WTO member countries, including the United States. I think the World Trade Organization could have sided with the European Union because they thought the United States had gone too far with the tariffs. They probably thought that if they allowed the EU to impose countertariffs on the United States that could damage trade between the two countries and start a trade war, the United States might come to its senses. I believe this was an attempt by the World Trade Organization to bring a truce between the two countries.2. If all tariffs on international steel trade were removed and subsidies to steel exporters around the world were banned, who would benefit? Who would lose from such an action? The net beneficiary of such a move would be steel consumers around the world. They would enjoy the most competitive prices the industry can offer. There are two potential losers from such a stock. First, all domestic producers who are not competitive would lose because they would be defeated by competition from low-cost imports. Second, all exporters who previously enjoyed local subsidies would lose because their governments cannot subsidize their production. Search where/time.a. Are there big changes in the steel industry?b. Is this a big change in support of what happens to the steel industry in the future? Basically, there are two main things happening in the steel industry: globalization and consolidation among steel producers. China, as the main consumer of steel, also strongly influences the sector. The recent Economist article below actually answers both questions and provides great examples: As recently as six years ago, while investors were still in thrall to a dotcom bubble that had yet to burst, steel was derided as a of the last bastions of the "old" economy. Many companies in the industry were state-owned or heavily protected by governments eager to preserve resources deemed vital to national interests. Globalization had left the steel business behind. It is a measure of the changes that have swept the business since the Internet bubble burst that last week Arcelor, a company created through a 2001 merger of major French, Spanish and Luxembourg steelmakers, made a hostile bid to C$4.