EU, seven other WTO members seek sanctions against US in dumping row
16/1/2004 12:48
Eight WTO members, including the European Union, Japan and India, asked the World Trade Organisation on Thursday for approval to slap sanctions on US products in response to illegal US anti-dumping rules.
But Australia, Indonesia and Thailand, the other countries that lodged a complaint with the global trade body in 2002 over the so-called Byrd amendment, have reached a separate agreement with the United States, a WTO source said.
"All eight have requested a special meeting of the dispute settlement body on January 26," said the source, referring to the WTO's judicial arm.
The five other states involved are Brazil, Canada, Chile, South Korea and Mexico.
The disputed US legislation -- named after its author Senator Robert Byrd -- allows the US government to distribute proceeds from anti-dumping tariffs to American firms that complain of damage from foreign imports.
The WTO made a final ruling in January 2003 that the provision violates its rules and set a deadline of December 27 for its revision, but Washington has so far failed to comply.
"It is clear that the Byrd amendment is a WTO-incompatible response to dumping and subsidisation and must therefore go," EU Trade Commissioner Pascal Lamy said in a statement released in Brussels.
"I hope the US will now take action to remove this measure, thus avoiding the risk of sanctions," he said.
Although the amount of compensation being sought by the eight WTO members was not revealed, the EU suggested that it should be linked to the amount of duties paid by the countries under the Byrd amendment during the previous year.
In 2002, total duties came to around 330 million dollars, it noted.
If Washington contests the request to apply sanctions the matter will be referred to arbitration, which is normally finished in 60 days, the EU said.
Aside from the escalating trade row, three unhappy countries managed to reach an agreement with Washington, said the WTO source.
"They have agreed to give the US one more year to implement (the WTO ruling to revise the Byrd amendment)," said the source.
But Australia, Indonesia and Thailand, the other countries that lodged a complaint with the global trade body in 2002 over the so-called Byrd amendment, have reached a separate agreement with the United States, a WTO source said.
"All eight have requested a special meeting of the dispute settlement body on January 26," said the source, referring to the WTO's judicial arm.
The five other states involved are Brazil, Canada, Chile, South Korea and Mexico.
The disputed US legislation -- named after its author Senator Robert Byrd -- allows the US government to distribute proceeds from anti-dumping tariffs to American firms that complain of damage from foreign imports.
The WTO made a final ruling in January 2003 that the provision violates its rules and set a deadline of December 27 for its revision, but Washington has so far failed to comply.
"It is clear that the Byrd amendment is a WTO-incompatible response to dumping and subsidisation and must therefore go," EU Trade Commissioner Pascal Lamy said in a statement released in Brussels.
"I hope the US will now take action to remove this measure, thus avoiding the risk of sanctions," he said.
Although the amount of compensation being sought by the eight WTO members was not revealed, the EU suggested that it should be linked to the amount of duties paid by the countries under the Byrd amendment during the previous year.
In 2002, total duties came to around 330 million dollars, it noted.
If Washington contests the request to apply sanctions the matter will be referred to arbitration, which is normally finished in 60 days, the EU said.
Aside from the escalating trade row, three unhappy countries managed to reach an agreement with Washington, said the WTO source.
"They have agreed to give the US one more year to implement (the WTO ruling to revise the Byrd amendment)," said the source.
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