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Abstract

This paper presents a multi-product price linked spatial equilibrium model of world steel trade. The model is used to analyse the impacts of the safeguard trade barriers brought about by the United States in order to protect their domestic industry from so called unfair competition. Emphasis is placed on the likely effect to the Australian industry and possible policy responses available to the industry. A case study is made on Australia's three largest export products, namely slab, hot-rolled and cold-rolled steel, which share some substitutability in supply and demand due to the nature of the industry.

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