Irish Finance Minister Warns Over EU-US Trade War

by Caroline Maxwell, Tax-News.com, London

16 April 2002

As the pressure increases on the United States government to remove the 30% import tariffs imposed on overseas steel products, Irish Finance Minister Charlie McCreevy has warned that the European Union should not rush into a trade war with the US.

The EU, Japan, China, South Korea, Norway, and Switzerland, on Friday called for Washington to lift the tariffs 'without delay', warning that if current consultations with the Bush administration fail to resolve the issue, they will proceed to request a WTO disputes settlement panel.

The group of countries reported on Friday that they had: 'delivered a very clear signal of the strong concern about the US protectionist measures among all the players on the global market'.

According to reports, the European Union has already drawn up a 'hit list' of US sectors to target with retaliatory sanctions. These are said to include the fruit juice industry in Florida, and the motorcycle manufacturing sector in Wisconsin, home of leading motorcycle maker Harley Davidson.

However, Mr McCreevy observed at the weekend that he sees little to be gained from engaging in a tit-for-tat row with the United States, and predicted that the estimated $2 billion in sanctions which the EU plans to impose, will not bring about a change of heart for President Bush. The US government has argued that the import tariffs are a legal and temporary move, designed to protect the country's ailing steel industry.

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