The implementation of the biggest economic project in Iran, i.e. targeting subsidies, can highly affect industries’ competitiveness considering the role of subsidies on their cost price. Steel industry has been considered as a basic industry throughout the world which is regarded as a basis for industrialization of countries. Also, it is one of the industries that may be highly affected by enforcement of targeting subsidies law. This industry requires high energy, capital and technology. Accordingly, increased price of the energy inputs affect the cost price of production and sales. Since the cost price of the product is one of the factors determinants and industry's competitiveness in the market, this study analyzed the law enforcement approach on domestic and foreign competitiveness of Khuzestan Steel Company between 2011 and 2012 through used unit cost competitiveness. And to evaluate government policies on the competitiveness of the company has been supportive of coefficients. The results showed that after targeting subsidies of energy, this Khuzestan Steel Company competitiveness has decreased compared to the time when energy subsidies were existed. and Government policy is to support the company's products.

The implementation of the biggest economic project in Iran, i.e. targeting subsidies, can highly affect industries’ competitiveness considering the role of subsidies on their cost price. Steel industry has been considered as a basic industry throughout the world which is regarded as a basis for in...