W.T.O. Rules That U.S. Steel Duties Are Illegal
nytimes.com
By THE ASSOCIATED PRESS
July 11, 2003
Filed at 10:50 a.m. ET
GENEVA (AP) -- The World Trade Organization ruled against heavy duties on steel imports imposed by the Bush administration, saying Friday that they violate global trade rules.
The European Union and seven other countries that had opposed the tariffs demanded Washington immediately lift the duties, which were supposed to protect the U.S. steel industry from cheap imports.
The EU said it was ready to impose $2.2 billion in retaliatory duties on U.S. imports, ranging from footwear to fruit and vegetables.
``This is not just a partial victory, this is a full victory. We have been given satisfaction on all accounts,'' said EU spokeswoman Arancha Gonzalez.
Bush introduced the ``safeguard'' duties of up to 30 percent on steel products in March 2002. During his presidential campaign, Bush had vowed to protect the domestic steel industry, a pledge seen as key to his victory in important steel-producing states.
But the tariffs raised sharp criticism abroad: European nations said the duties hurt their industries, and many saw the step as part of a pattern of unilateral acts by the Bush administration. In the United States, some carmakers complained that the tariffs increased steel prices.
There was no immediate reaction from Washington to Friday's ruling, which confirmed an interim ruling released in March. At that time, U.S. officials said they would appeal, which would allow the duties to remain a while longer.
The Bush administration had argued the tariffs met WTO provisions allowing temporary duties for up to three years to protect a domestic industry from a flood of cheap imports and give it time to restructure. The European Union and its allies complained the move breached a raft of WTO rules.
In its ruling, the WTO panel, headed by Stefan Johannesson of Iceland, said Washington failed to prove its measures were necessary because of ``unseen developments'' in the world steel market.
The United States said the unforeseen developments were created by the combination of the Russian and Asian financial crises, the strong U.S. dollar and the strong U.S. economy.
But the panel said Washington did not show how these events led to a sudden increase in imports -- the primary requirement before safeguard duties can be imposed.
It also said the United States had acted illegally by exempting imports from certain countries from the duties. Canada and Mexico -- Washington's partners in the North American Trade Agreement -- were excluded, as were Israel and Jordan.
Last month, the European Union's top trade official warned the Bush administration that the 15 EU members would will not hesitate to impose billions of dollars of sanctions on American products if the United States did not remove the tariffs.
``These safeguards have cost us a lot of (steel) exports and a lot of money and (they) should disappear as soon as possible,'' Pascal Lamy said in Washington.
Gonzalez said Friday that the EU was ready to impose its retaliatory duties unless the United States removes the duties within five days of the WTO's adopting the report. Retaliatory duties could be delayed if the United States appeals.
The other countries that appealed the U.S. action were Japan, South Korea, China, Switzerland, Norway, New Zealand and Brazil. It was the first time China or Switzerland had taken a complaint to the WTO.
Copyright 2003 The Associated Press | |
