To: Mephisto who wrote (752 ) 11/29/2003 12:03:03 PM From: Eashoa' M'sheekha Read Replies (2) | Respond to of 3079 Bush steel tariffs decision "imminent" 28.11.2003 - 00:30 By Adam Entous CRAWFORD, Texas (Reuters) - Under mounting international pressure, President George W. Bush is expected to announce plans within days to scrap or roll back tariffs on steel imports to head off retaliation from European and Asian trading partners, congressional and industry sources say. Ending the tariffs 16 months ahead of schedule to comply with a World Trade Organization ruling could spark a political backlash against Bush in next year's presidential election in the pivotal steel-producing states of Ohio, Pennsylvania and West Virginia. But key Bush advisers concluded that the tariffs were causing more harm than good and that lifting them would boost Bush's standing with small- and medium-sized Midwestern manufacturers, another important constituency. The White House insists no decisions have been made since the WTO issued a final ruling this month that the tariffs violated international trade rules. But Bush aides have raised expectations the tariffs will come down, saying they have already served much of their purpose by giving the steel industry time to consolidate operations and become more competitive after a string of bankruptcies. Aides also point to cost cutting, productivity gains and new union contracts as signs of a stronger steel industry since Bush's March 2002 decision to impose tariffs of up to 30 percent on imported steel. Steel importers said they are increasingly confident Bush will end the tariffs as early as this weekend -- just days before the European Union was set to make good on threats to retaliate on $2.2 billion (1.28 billion pounds) worth of U.S. exports. "The only question is when," said David Phelps, president of the American Institute for International Steel, which represents steel importers. But U.S. steel makers and workers say they have not given up hope Bush will stay the course. They have appealed to Bush to maintain the tariffs for the full three years as originally planned, and argue that a wave of consolidation in the industry over the past year shows they have held up their end of the bargain to become more competitive. "It's working," Gary Hubbard, a spokesman for the United Steelworkers of America union, said of the tariffs. "We don't think the foreign steel producers ought to be dictating our steel policy." Bush will visit Detroit on Monday, home to major steel-consuming industries. On Tuesday he travels to Pittsburgh, a stronghold of steel makers and workers. Both sides agree Bush's decision is imminent, though it could slip into next week. The full WTO membership is expected to formally adopt the steel ruling on Monday, setting the stage for the EU to raise tariffs on December 6 if Bush does not drop the duties. To soften the blow to U.S. steel makers, the Bush administration may keep a steel import licensing and monitoring system in place, according to industry sources. That system requires businesses which import steel products to obtain a license. Advocates call it an "early warning system" against potential surges in steel imports.