EU, seven other countries prepare to retaliate against U.S. dumping act

EU, seven other countries prepare to retaliate against U.S. dumping act    The European Union and seven countries of the Americas and Asia on Thursday requested an authorization from the World Trade Organization to impose import duties on U.S. exports, to retaliate against U.S. legislation on dumping and subsidies ruled illegal by the Geneva-based international trade body.
   The EU, Brazil, Canada, Chile, India, Japan, Korea and Mexico requested a meeting by the WTO’s Trade Settlement Body to discuss potential sanctions against the U.S. Continued Dumping and Subsidy Offset Act of 2000, known as the Byrd Amendment.
   In January 2003, the WTO upheld complaints by U.S. trading partners that the redistribution of antidumping and countervailing duties to U.S. domestic producers was against WTO rules.
   The U.S. had until Dec. 27 to bring the Byrd amendment into conformity with WTO rules, a deadline that expired with no compliance by U.S. Congress.
   The European Commission said U.S. companies in the ball bearing, metal, household item, food and other industries received $231 million in payments in 2001 and about $330 million in 2002 under the antidumping legislation.
   “It is clear that the Byrd Amendment is a WTO-incompatible response to dumping and subsidization and must therefore go,” said EU trade commissioner Pascal Lamy. “I hope the U.S. will now take action to remove this measure, thus avoiding the risk of sanctions.”
   In seeking the authorization to retaliate against the U.S. legislation, the EU proposed that the level of the duty should be linked to the disbursements made to U.S. producers under the Byrd amendment during the previous year. It did not disclose which products would be targeted by EU duties.
   The United States plans seek WTO arbitration in the matter. “The retaliation being sought by the other complaining parties does not appear to be based on actual harm to their exports,” said John Veroneau, general counsel for the U.S. Trade Representative’s Office, in a statement.
   The Byrd amendment, named for sponsor Sen. Robert Byrd, D-W.Va. and passed by Congress in 2000, authorizes the government to pay antidumping duties to U.S. companies that petition for them. Prior to the rulemaking, this money ended up in the general treasury.
   The WTO Dispute Settlement Body will meet on Jan. 26. It is expected to approve trade sanctions against the United States. If the United States contests the validity of the requests, the matter will be referred to arbitration, which will normally be completed within 60 days.
   The dispute on the U.S. antidumping and subsidy question follows last year’s tensions over U.S. steel import duties, also ruled illegal by the WTO. The steel duties were eventually removed by the Bush administration, removing the threat of retaliation by the EU.