EU Awaits U.S. Decision Before Deciding Whether to Escalate Steel Tariff Dispute
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Wednesday July 3, 3:24 pm Eastern Time
Associated Press
EU Awaits U.S. Decision on Steel
By PAUL GEITNER
AP Business Writer
EU Awaits U.S. Decision Before Deciding Whether to Escalate Steel Tariff Dispute
BRUSSELS, Belgium (AP) -- The European Union said Wednesday it would push ahead with retaliation against U.S. steel tariffs unless Washington offers sufficient "damage limitation" in the form of exemptions for European steelmakers.
EU officials were waiting for a decision from Washington on hundreds of exemption requests by foreign steelmakers for specific products. But the EU will not decide its next step until July 19.
Germany's ThyssenKrupp, for example, is seeking exemptions for 350,000 tons of high-grade carbon steel it ships to the United States, mainly for DaimlerChrysler. ThyssenKrupp spokesman Erwin Schneider said he did not expect a decision from Washington until July 11.
EU spokesman Anthony Gooch said Washington's final list would be analyzed by the EU's executive commission, which makes a recommendation to the 15 member states.
"If things are going well and there is every prospect they will be delivering a sizable package," he said, the commission would likely recommend holding off on imposing 100 percent tariffs on selected U.S. products until October, when it will be reassessed.
If the commission believes the exemptions do not go far enough in "damage limitation," it would recommend imposing its own 378 million euro ($370 million) in sanctions on U.S. imports, effective Aug. 1.
"It's not our preferred instrument," Gooch added. "We prefer a compensation package."
The commission is slated to make its recommendation July 19.
Seeking to apply maximum pressure, the EU list targets products from states important to President George W. Bush's Republican party in this year's congressional elections, such as citrus juice from Florida and cigarettes and textiles from North Carolina.
Bush imposed tariffs of up to 30 percent on a range of steel products in March, arguing a flood of imports has contributed since 1997 to more than 30 bankruptcies of U.S. steel companies and thousands of lost jobs.
The EU, Japan and other U.S. trading partners have complained about the tariffs to the World Trade Organization, but no decision is expected until next year.
Meanwhile Wednesday in Geneva, the United States lost in another steel dispute with the EU.
A WTO panel ruled that the way Washington decided to extend tariffs on certain corrosion-resistant, carbon flat steel products from Germany was inconsistent with its WTO agreements and recommended the law be modified. |
