US Gives Further Steel Tariff Exemptions To Japan

by Mike Godfrey, Tax-News.com, New York

15 August 2002

The Japanese Economy, Trade and Industry Ministry said yesterday that the US had granted exemptions from the steel tariffs imposed last March on a further 250,000 tonnes of Japanese exports, taking the total exempted to 500,000 tonnes, within shouting distance of the 800,000 tonnes of exemptions requested by the Japanese.

An official said that further exemptions might be announced before August 31st, the date when Japan is due to decide whether to impose duties on US goods in retaliation.

The European Union last month delayed its decision to impose US$350 million in penalties on US goods until the end of next month because of exemptions given by the US.

US steelmakers are demanding a halt to the process of granting exemptions; but they have wasted the opportunity given them to reform their industry, simply taking the opportunity to put up their prices - a classic demonstration of the futility of protectionist measures.

The flow of exemptions represents a fight-back by the US Commerce Department, which was unable to prevent the imposition of the tariffs, itself a political gesture on the part of the administration.

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