‘Zero tolerance’ bed of nails for Indian firms

Date: 29/03/01

The WTO ruled that the Commission's decision to slap duties on Indian firms accused of 'dumping' bed-linen on EU countries went too far.

It said that the 'zero tolerance' approach of Commission officials was illegal because it failed to take account of deals that did not involve dumping.

But the EU executive, India, and a string of allies from Chile to Japan are now asking the Geneva-based dispute resolution body to settle the latest in a series of dumping disputes with the United States. Veteran US Senator Robert Byrd tagged a provision onto a law adopted last year that allows US companies launching anti-dumping cases to get a share of the spoils when duties are imposed.

The EU and other trading partners say the 'Byrd amendment' - criticised by then US President Bill Clinton - violates WTO rules by setting up a system that encourages anti-dumping complaints by rewarding the 'victors'.

Said Lamy: "The Byrd amendment is not an EU-US problem but a US v Rest of the World problem."