WTO Rules In Favour Of EU Over Steel Tariffs

by Ulrika Lomas, for LawAndTax-News.com, Brussels

15 July 2003

The United States announced on Friday that it will appeal a World Trade Organisation ruling that the steel tariffs imposed on imports by the Bush administration last year are in contravention of international trading rules.

The 1,000 page WTO verdict, issued in response to formal complaints from the European Union, Japan, and several other countries, argued that the tariffs - put in place to aid the ailing US steel industry - violate the WTO's General Agreement on Tariffs and Trade (GAT), and its Agreement on Safeguards.

According to reports, European Commission spokeswoman, Arancha Gonzalez revealed following the delivery of the WTO's ruling that the EU has compiled a list of US goods representing around $2 billion upon which it is prepared to impose retaliatory tariffs.

However, also speaking on Friday, spokesman for the Office of the US Trade Representative (USTR), Richard Mills announced that:

'Where the panel found against the United States, we disagree, and we will appeal. In the meantime, the steel safeguard measures will remain in place.'

President Bush is facing great domestic pressure from the US steel industry to keep the tariffs in place for the full three years.

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