Trade Protectionism

Considering the current situation of UK, trade protectionism is the most suitable trade theory that is applicable on the steel industry of UK. To save the industries from crises, protectionism is the main approach that is adopted by different governments. Protectionism is characterised by imposition of limitation on trade. The main motive behind protectionism that can save steel industry of UK include,
Protection through Imposing Trade Barriers
Barrier to trade is normally used to save the local industries including the local emerging industries. This helps in providing the firms with the advantage of developing, growing, and becoming globally competitive. Also protection of local industries helps the industries in developing competitive

Protect Strategic Industry
Hindrances might likewise be raised to ensure vital commercial ventures, for example, vitality, water, steel, combat hardware, and sustenance. The verifiable point of the EUs Common Agricultural Policy is to make sustenance security for Europe by ensuring its rural segment (Negishi, 2013).

Protection of Non-renewable Resources
Non-renewable assets, including oil, are viewed as an extraordinary situation where the ordinary guidelines of organised commerce are frequently relinquished. For nations planning to depend on oil trades enduring into the long haul, for example, the oil-rich Middle Eastern economies, restricting yield in the transient through generation shares is one strategy utilised to save assets
Discouragement of Unfair Competition
Barriers can also be imposed to discourage unfair competition such as discarding and dumping excess material produced by the foreign firms at uneconomical prices (Negishi,

To tackle the industry crises, UK government has taken permission from EU to facilitate the industry, providing energy intensive industries for the extra costs of climate change policies. According to trade union Umbrella body, the scheme will give this year, 60 million to 53 firms. The government has granted up to 81 million in 2015 of which 34 million have been granted to steel industries for compensation of the extra cost (Tovey, 2016).
In such crises the role of UK government has remained limited due to the strict policy of the state especially in the steel sector. The government is still trying to tale EU clearance for resolving a number of issues of the steel industry. To tackle the issue of import of steel from China at extremely low price, the government has voted the extension of the anti-dumping policy of EU on Chinese wire rod products and is on the view to take action until the arrival of further cases. The government, however, has failed to introduce any effective trade protectionism to save the steel industry form the crises (Macalister & Kollewe,