US Hits Back Against EU With Uranium Ruling

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

28 January 2002

In what has to be seen as a riposte to last week's WTO ruling against US export tax breaks, quasi-judicial US trade panel the International Trade Commission on Tuesday ordered punitive duties of up to 32% to be imposed on enriched uranium from four European countries. The ITC said in a statement that it upheld the findings of the Commerce Department last year that uranium was being sold at unfairly low prices to the United States, making "affirmative determinations" in a final ruling in anti-dumping investigations into uranium from France, Germany, the Netherlands, and Britain used for nuclear power generation.

"The US government's decision will help ensure that the US enrichment market remains open for strong, healthy competition," said USEC president and CEO William Timbers. "We believe this is in the long-term interests of our industry, our customers and the nation's energy security."

Then on Wednesday the European Commission said it could refer the US recommendation for punitive duties to the WTO. A statement from EU Trade Commissioner Pascal Lamy said the ITC ignored evidence and arguments put forward by the European Union and European industry during the investigation. He said that EU exports worth $500m would be hit by the duties.

"The EU is disappointed and very concerned at these findings. It will now carefully examine these decisions and reserves its right to take the matter up in the WTO," he said. Lamy said the EU remained open to further bilateral talks, but was particularly concerned about the calculation methodology used by the United States, which has effectively created margins of subsidy and dumping where none existed, he said.

The case was brought by the United States Enrichment Corp in December 2000 against two European consortia trading in enriched uranium, the French state-controlled Eurodif and Urenco, which is held jointly by Germany, Britain and the Netherlands.

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