EU to hit U.S.A. with sanctions if WTO ignored

  • 2003-11-27
  • By Patrick Baert, AFP
GENEVA - The European Union said Nov. 24 it would slap billions of dollars in sanctions on U.S. goods on Dec. 6, five days after the WTO officially adopts a ruling against U.S. steel tariffs, unless Washington complies with the decision.

"We will take action five days after the adoption of the ruling on Dec. 1," said a Geneva-based official from the 15-nation bloc.
Earlier this month the World Trade Organization's highest tribunal found that U.S. tariffs on selected steel imports flout international rules and should be amended.
This decision will be formally adopted during a meeting of the dispute settlement body, said a WTO spokesperson.
The eight WTO member states - which include Brazil, China, Japan, New Zealand, Norway, South Korea and Switzerland - that launched a complaint to the trade body last year against Washington's steel tariffs wanted the adoption to take place during the meeting, the EU official said.
In June 2002, the EU warned it would automatically slap tariffs worth $2.2 billion on a range of U.S. imports five days after the formal adoption of the WTO decision.
Washington could prevent this from happening if it abolishes the three-year tariffs of up to 30 percent, which were applied to protect ailing U.S. steel mills and their workers.
The earlier adoption leaves Bush with less time to make up his mind.
The U.S. president indicated Nov. 20 that no decision had been made on the steel issue.
"I'm looking at the findings right now and will make a timely decision," he said at a press conference while on a state visit to Britain.
U.S. Under Secretary of Commerce for International Trade Grant Aldonas said Nov. 24 that Washington was committed to complying with rulings by the WTO over steel tariffs and tax breaks, but it wanted similar action from its European partners.
The potential sanctions by the European Union, which would be the heaviest ever approved by the WTO, will focus on "sensitive" imports from the United States, such as textiles, shoes, fruits and vegetables.
A report on Nov. 22 said Japan would raise tariffs on U.S. steel products and gasoline by 30 percent if Washington failed to retract its steel import curbs by the end of the month.