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WTO formally declares tariffs illegal
GENEVA (AP)--The World Trade Organization formally adopted a report Dec. 10 that declared U.S. duties on imported steel illegal, even though President Bush already has ended them.
The meeting of the WTO's dispute settlement body had been expected to be the trigger for a trade war between the United States and its major trading partners, including the European Union. But Bush's announcement in early December that he was dropping the duties meant the report's adoption was no more than a formality.
U.S. Ambassador Linnet Deily stood by the U.S. actions.
"Over the past 20 months, U.S. steel producers have used the breathing space provided by the safeguard measures to restructure, consolidate and negotiate labor contracts that helped them adjust to import competition," she said.
Deily said the decision to remove the measures was made because of "changed economic circumstances." She made no reference to threats by the European Union and others to retaliate with extra duties on U.S. imports.
The 15-nation EU and seven other WTO members took complaints to the trade body after Bush announced the extra duties of up to 30 percent on steel imports in March 2002.
A panel of legal experts ruled in July that the U.S. action was illegal, and most of its findings were upheld on appeal.
Bush introduced the duties to give the U.S. steel industry time to restructure so it could compete with foreign imports. The decision was criticized not only by other nations but also by auto makers and other steel users within the United States, who claimed the higher steel prices were leading to job losses in their industries.
The complaining countries said they were happy with Bush's action but planned to keep a close eye on U.S. regulations that still require licensing of imports.
They also called on other countries to remove duties that they imposed on foreign steel imports in reaction to the U.S. measures. The EU has withdrawn its duties but some countries, including China and Hungary, have yet to follow suit.
Date: 1/8/04
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