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.