US gets WTO panel on EU steel counter-measures
GENEVA (September 17 2002) : The United States on Monday forced establishment of a World Trade Organisation (WTO) dispute panel against the European Union over measures taken by Brussels to counter the effects of special US steel tariffs.
Despite objections from the EU, which with the backing of several other countries has already had a panel established on the US tariff move, US officials insisted that the panel on their own complaint be set up.
President George W. Bush imposed the special tariffs of up to 30 percent on a wide range of steel products in March to shield the ailing US industry from imports.
The EU, saying other countries' steel exports would be diverted from the United States into its markets, then adopted its own measures to protect its own steel sector.
At a meeting of the WTO's Dispute Settlement Body (DSB), hearing the US request for the second time, the United States argued that the EU's decision to set provisional six-month ceilings on steel imports was illegal.
Under WTO rules, a panel is automatically established on second request.
A US submission to the DSB said the 15-nation Union had imposed the measures without going through a process of checking whether there was clear proof that there had been a surge of steel imports threatening the European industry.
Responding, the EU said it deplored the US decision to press for the panel, saying its measures had been taken to create "a safety net against the highly probable diversion of the steel trade barred from the US market."
These had been decided "in response to the US protectionist action".
While Bush argued that the tariffs were essential to protect the US steel industry from a surge of imports, the EU and other WTO members including Japan, South Korea, China and Brazil said there was no evidence of this.
Initially, the EU and Japan indicated that they might impose retaliatory sanctions on other US products immediately.
They have suspended or withdrawn that threat after negotiations that greatly reduced the steel products affected.
Japan and South Korea, joined by Egypt, told the DSB meeting on Monday that they wanted third party rights in the latest panel hearings.
All three have complained that the EU measures could hurt their exports.
Argentina told the session that it was following the case closely and indicated that it could also join in the complaint against the EU.
It said it had learned that Brussels was planning to adopt definitive safeguard measures on seven categories of steel products, two of which it exported to member countries of the EU.
But it gave no further details.
There was no immediate comment from EU officials on the Argentine allegation.
Courtesy Business Recorder
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