US Attempts To Block WTO Ruling On Steel Tariffs

by Ulrika Lomas, Tax-News.com, Brussels

27 May 2002

It was revealed last week, as President Bush began his four-nation European tour, that the United States has attempted to stall EU retaliation against steel import tariffs imposed by the US government earlier this year.

Under World Trade Organisation rules, member states facing an investigation can reject the creation of an expert panel to rule on the legality of the measures under dispute once, although a second request from any other WTO member will automatically lead to the establishment of such a panel.

The US attempt to block a World Trade Organisation ruling on the steel tariffs, despite protestations that the American authorities are 'confident' that the trade body will rule in their favour, is ill-timed at best, given the cool reception which President Bush received as he commenced his tour of Germany, France, Italy and Russia in Berlin last week.

It also seems somewhat futile, given that the creation of an expert panel and a subsequent ruling on the matter are almost inevitable. The European Union, Japan, and Korea have all said that they will lodge a new request with the WTO when the dispute settlement body meets again on June 3, and China, Brazil, New Zealand, Norway, and Switzerland are all in talks with the multilateral trade body over the steel tariffs.

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