EU imposes retaliatory duties on imports from U.S.

EU imposes retaliatory duties on imports from U.S.    The European Commission finally decided Thursday to impose duties on imports from the United States from May 1 over its long-running dispute about the U.S. Byrd Amendment legislation.
   In the latest twist in the dispute over the Byrd Amendment, formally known as the “Continued Dumping and Subsidy Offset Act of 2000,” the European Union said it will impose an additional duty of 15 percent on a range of products which include paper, agricultural, textile and machinery products. The Byrd Amendment was ruled contrary to international rules by the World Trade Organization in 2003.
   The European penalties would amount to about $28 million, but the European Commission added that the duties are only a first step.
   “This level will be revised annually to adjust to the level of damage caused to EU companies,” the EC said. The EC has already prepared a “reserve list” of products to be targeted if it wants to increase the trade sanctions.
   The EC penalties against the U.S. follow an authorization granted in November 2004 by the WTO to impose retaliatory measures against the U.S. Byrd Amendment, regarded as contrary to WTO rules. Eight WTO members (Brazil, Canada, Chile, the EU, India, Japan, Korea and Mexico) had requested the WTO to authorize retaliation in January 2004.
   “More than a year later, the United States has still not respected its international obligations,” the EC said.
   The EU said it is cooperating with the seven other WTO complainants, and that the EU understands that Canada will be announcing retaliatory measures against certain products from the U.S.