June 4, 2002	Tuesday	Rabi-ul-Awwal 22,1423

GENEVA, June 3: The World Trade Organization has approved the setting up of a panel of experts to examine the legality of US steel tariffs following a complaint by the EU, European sources said here on Monday.

The United States used its right under WTO dispute settlement rules to block similar requests by Japan and South Korea, the source said.

But delegates representing Tokyo and Seoul told Monday’s meeting of the dispute settlment body that they would lodge a second request on June 14. According to WTO rules, a second request cannot be blocked.

The complaints by the European Union, Japan and South Korea focus on the US introduction on March 20 of a three-year programme of up to 30 per cent tariffs on some imported steel.

Of the six million tons of steel that the 15-nation bloc exports to the US every year, four million tons, or two-thirds, are “adversely affected” by the tariffs, the EU has said.

They represent a trade value of $2.3 billion, according to EU figures.

Accusing the US of delaying tactics, the EU told the meeting that its delegation would ask for talks later in the day on the membership of the expert panel.

Brussels has already warned it may impose 378 million euros worth of punitive measures on US products from June 18 if it is not compensated by the US for the new steel tariffs.

Tokyo has taken a similar line, drawing up a list of US products that could be slapped with tariffs worth $4.88m from June 18 if the US does not remove its tariffs.

Both the EU and Japan have a second list of US goods that could be targeted for retaliatory measures in the case that the WTO panel rules that the US measures do not conform with global trade rules.

A decision by a WTO panel normally takes about six months, but appeals by either side in the dispute could extend the process over a year. High-profile EU-US rows over bananas and beef dragged on for a number of years.—AFP