Alloyed Protectionism

The ailing copper and steel industries have long complained that their problems are mainly the result of overseas competition. Last week both industries received some support. In separate decisions, the International Trade Commission, an independent federal agency, ruled that both copper and steel have been seriously injured by low-cost foreign shipments.

Steel manufacturers want to limit imports to no more than 15% of the American market, about 60% of the current level. Copper companies are urging the Government to restrict imports for five years to a level equal to about two-thirds of last year's shipments.

The ITC decisions gave an unfortunate boost to protectionism and put President Reagan in an election-year bind. Sweeping restrictions would be against his own free-market principles, but a vote against steel and copper quotas could hurt at the polls. New import quotas could also cause problems abroad. Chile and Canada, the two largest U.S. suppliers of copper, lobbied strongly against cutbacks. Steel producers like Mexico and Brazil have already announced voluntary restraints on their exports to the U.S., and further reductions would aggravate their debt woes.

The President has little room to waffle. According to law, the ITC must make its recommendations by late July, and the President must decide whether to approve, reject or modify its proposals by the end of September.