WTO allows $150 million U.S. sanctions over Byrd Amendment

WTO allows $150 million U.S. sanctions over Byrd Amendment    The World Trade Organization Friday authorized the European Union and six other WTO members to impose retaliatory measures against the United States in a dispute over an illegal antidumping law.
   The WTO ruling will allow the EU, along with Brazil, Canada, India, South Korea, Japan and Mexico, to levy additional import duties on a variety of U.S. products including machinery, foodstuffs, textiles and paper products. The initial sanction will amount to $150 million according to Reuters.
   The dispute relates to the Continued Dumping and Subsidy Offset Act of 2000 (better known as the “Byrd Amendment”) which the WTO ruled illegal in January 2003.
   “It creates an undue incentive for U.S. industries to seek the imposition of duties on imported goods, improving their competitive position and assisting them in the form of cash payments,” the EU said.
   The EU said it would impose the retaliatory measures early next year should the United States fail to bring its legislation into conformity with the WTO ruling.
   Reuters quoted President Bush as saying, “I’ll work with Congress to get into compliance.”