This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




Japan Keen To Impose Sanctions If US Doesn't Repeal Byrd Amendment

by Glen Shapiro, LawAndTax-News.com, New York

06 September 2004

A statement issued last week by the Japanese Foreign Ministry has revealed that the authorities are keen to press ahead with the imposition of sanctions as soon as possible, if the United States fails to repeal its anti-dumping laws.

The World Trade Organisation (WTO) last Tuesday gave its approval for the EU and seven other WTO members to impose sanctions on the United States in response to the controversial Byrd amendment.

Under the terms of the amendment, introduced in 2000, overseas firms which sell their products at below cost price in the US can be fined by the government, with the money going to the US firm or firms which initially made the anti-dumping complaint.

The European Union, Brazil, Canada, Chile, India, Japan, Mexico, and South Korea have argued for several years that such a regime permits illegal subsidies for the industries in question, and is therefore incompatible with WTO rules.

According to EU figures, around $800 million has been diverted to US companies since 2001, with the steel industry one of the main beneficiaries.

In a statement released following the WTO announcement, the Japanese Foreign Ministry expressed hope that the US government would act in a timely fashion to repeal the amendment, but warned that it will not hesitate to impose sanctions if this does not take place.

"Now this ruling has been given, Japan may exercise its retaliatory rights in accordance with the decision and the requirements of the WTO rules at any time deemed appropriate," it announced, continuing:

"In case the US does not repeal the Byrd Amendment, Japan, in cooperation with the co-complainants, will again lodge with the WTO an application for retaliatory measures in accordance with the decision as early as this autumn. This application will be automatically approved, pursuant to the WTO Agreement, and after that the retaliatory measures will be taken at any time."

.

 

 






Write a comment