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Home -> Finance -> Full Story
US prepares to fight EU action on steel tarrifs
Saturday, June 1 2002 14:08 Hrs (IST)

Geneva: Under intense pressure over its controversial protectionist steel tariffs, the US seemed determined on May 31, to fight action taken against it by its main trading partner, the EU.

Marking a new chapter in the international row over steel, the United States has asked for World Trade Organisation (WTO) consultations with the 15-nation bloc over Brussel's own provisional tariffs on imported steel.

The EU adopted tariffs on 15 steel product categories on March 28, in a bid to protect EU markets from an influx of steel exports diverted from the US after Washington imposed its own tariffs.

The officials pointed out that US tariffs were imposed after a six-month inquiry by the International Trade Commission (ITC), an independent agency that conducted hearings and gave the opportunity to all interested parties to present their views.

"The US administration spent three months evaluating the findings of the ITC before proceeding with safeguards. By contrast, the EC (European Commission) imposed its measures, the day it announced them. There was no time for any investigation,” an official said.

In a letter from the US Mission to the WTO, Carlo Trojan, EU Ambassador to the trade body, the United States said, it believed the EU measures were inconsistent with the WTO's agreements on safeguards and tariffs and trade on a number of counts.

The EU's own request for WTO experts to examine the legality of the US measures will lead to the establishment of a panel on June 3. Japan and South Korea are also due on June 3, to lodge requests for panels against the US measures, followed by a Chinese request on June 7.

Switzerland, Norway, New Zealand and Brazil are currently holding talks with the US under the WTO's dispute settlement system and could in addition request panels.

The EU and Japan have threatened to impose retaliatory sanctions on US products from June 18 if they are not compensated by the US. But, a senior US trade official on May 30, cast doubt whether the EU and US could negotiate compensation.

"I don't want to hold out any hope that we will be engaging in negotiations about compensation," said Grant Aldonas, Under Secretary for International Trade at the US Commerce Department.

The EU has threatened punitive sanctions against US products of 380 million Euros. The EU's Ad-Hoc Steel Committee on May 31, voted to continue pressing for compensation from the United States, reaffirming its support for the EC's stance.

"We welcome the unanimous support given to the commission on June 1, by the 15 member states in its on-going efforts to respond to the illegal protectionist measures taken by the USA on steel," the Commission's Trade Spokesman, Anthony Gooch, said in a statement.

The statement said the, member states fully supported the commission in seeking a satisfactory offer of compensation and product exclusions, which they expect the US to put forward, thereby obviating the need to apply countermeasures in the short term.

The EC might be willing to envisage a "limited delay" in the application of the sanctions, if it would contribute towards the resolution of the case on the basis of an agreement on "a satisfactory package" including both exclusions and compensation, Gooch said.






















AFP
Copyright AFP 2001