WTO to EU, Japan: Hit U.S. with Sanctions
The World Trade Organization (WTO) gave final approval on Friday to the European Union, Japan and others to hit the United States with an initial $150 million in trade sanctions in a row over an illegal anti-dumping law.
"They've got the go-ahead," said Kenyan ambassador Amina Mohamed, chairwoman of the WTO's Dispute Settlement Body.The case, one of a number pitting Brussels against Washington, involves the so-called Byrd amendment, which the WTO has repeatedly said breaks trade rules by handing out duties raised in anti-dumping cases to U.S. firms.
The opening round of punitive duties -- which will be reviewed each year -- is relatively modest, when compared, for example, with the $4.0 billion the EU was awarded in a case over corporate tax breaks. But the figure could soar in coming years.
The administration of President Bush has called on Congress to drop the law. But it enjoys wide support among legislators, who see it as a way of punishing foreign companies accused of dumping, or exporting goods at below the cost of production.
The lion's share of the right to retaliate goes to the European Union and Japan, because their companies are the most affected. Brussels has warned it could slap additional duties on U.S. goods early in 2005 if Washington does not repeal the law.
"We are delighted that the authorization confirmed our case...We hope that the U.S. will bring the legislation as soon as possible into conformity (with international rules)," EU trade spokeswoman Claude Veron-Reville said in Brussels.
(From Reuters, November 26, 2004)
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