Effect of Foreign Steel Purchases by Domestic Steel Producers

NSIAD-83-40: Published: Aug 3, 1983. Publicly Released: Aug 4, 1983.

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Pursuant to a congressional request, GAO examined the effects of foreign steel purchases by domestic steel producers on steel industry employment.

Ten major steel-producing firms were asked to provide information about their steel imports during 1980-1982, plus any actual or planned purchases in 1983. GAO found that the amount of estimated steel imports by steel companies was small, especially when expressed as a percent of total imports and domestic production. Although estimated imports by steel producers increased by about 300 percent from 1980 to 1982, these imports comprised only 1.4 percent in 1980 and 5 percent in 1982 of total steel imports. GAO believes that steel company imports had little if any impact on average employment in the steel industry between 1980 and 1982 and that other factors, such as the depressed condition of the steel industry, had a much more important impact on employment trends.

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