EU Lodges Complaint Over Steel Tariffs

by Ulrika Lomas, Tax-News.com, Brussels

11 March 2002

It was revealed on Thursday that the European Union has officially lodged a complaint with the World Trade Organisation over US President George Bush's imposition of a 30% tax on imported steel.

EU Trade Commissioner Pascal Lamy last week announced that the 15 nation bloc is coordinating its plan of action with other countries which have protested at the move, such as Australia, Japan, and Korea, but observed that the EU is the 'foremost victim' of the move, as its member states account for some 25% of US steel imports.

Under the WTO dispute settlement system, the European body will first seek consultations with the US on the issue, and will then puts its case to a panel of experts who will rule on whether the US import tariff conforms to global trade rules.

However, the European Commission President, Romano Prodi has urged caution, suggesting a softly-softly approach on the issue.

'It is clear that this is a decision which has no justification,' he admitted, 'but it is also clear that we have to use restraint and wisdom because it's only one part of our big, big trade with the United States'.

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