EU And US Meet To Discuss Steel Tariffs

by Ulrika Lomas, Tax-News.com, Brussels

20 March 2002

Representatives from the 15 European Union member states and the Bush administration met yesterday in an attempt to come to some agreement over the trade dispute currently brewing between the two blocs over US steel tariffs.

The diplomats met in Geneva to discuss the 30% import tariffs on steel products, due to come into effect today. President George Bush imposed the taxes with the rationale that they would allow the US's ailing steel industry, which has suffered a rash of bankruptcies since the mid-1990's, to get back on its feet.

However, critics of the tariffs, which include the EU, Japan, South Korea, Australia, and New Zealand, have argued that there has been no sudden rush of imported steel to the United States, and that therefore the President's actions are illegal under World Trade Organisation rules.

It was revealed on Monday that European Commision proposals to impose retaliatory sanctions on US steel and textiles if an agreement is not reached, received unanimous support from all European member states.

And indeed, there was no sign yesterday that either party is likely to back down from their stated positions any time soon. Speaking to the Reuters news service prior to the meeting, at which the US was represented by Assistant Trade Representative for Industry, Florizell Liser, an unnamed European diplomat warned: 'Don't expect much to come of this.'

Reuters reported that Ms Liser stuck to the Bush administration's guns at the Geneva meeting, arguing that the tariffs are legal under WTO guidelines, and refusing EU demands for compensation.

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