Sanctions considered against US after anti-dumping law ruling

By Anna McLauchlin

Date: 02/09/04

THE EU will consider in the next few days whether to slap hefty sanctions on the US after the World Trade Organization (WTO) supported its challenge of an American anti-dumping law.

On Tuesday (31 August) the WTO ruled that the EU and seven countries - Brazil, Canada, Chile, India, Japan, Mexico and South Korea - could demand €123 million from Washington for failing to repeal the so-called Byrd Amendment. Under this law, the US government fined companies who dumped goods and gave the resulting revenues to companies that had complained about the dumping.

Although Trade Commissioner Pascal Lamy applauded the WTO ruling, he would not say if the EU would impose sanctions unilaterally. "This is a decision we still have to take."

His spokeswoman Arancha Gonzalez said the EU's goal was to see the law quashed.

But she added that the fact that the US elections are on the horizon would be "taken into account."

The Union has long regarded the Byrd Amendment payments as illegal subsidies.

In its response to the ruling, the Bush administration pledged to work with Congress to alter the Byrd Amendment. Nonetheless, the American government said it would remain vigilant against dumping.

US companies netted around €460 million from the law in 2001 and 2002. Among the main beneficiaries were ball-bearing, steel, candle, pasta and seafood firms.

World Trade Organisation: Dispute Settlement: 2004 News Items, 31.8.04 http://www.wto.org/english/news_e/news04_e/news04_e.htm

---