GENEVA, July 11: The World Trade Organization on Friday ruled that some US steel tariffs flout international trade rules, upholding a complaint filed by the European Union, Japan and six other countries.

“This is not just a partial victory. It’s a full victory. We have been given satisfaction on all accounts,” European Commission spokeswoman Arancha Gonzalez said in Brussels.

The commission, the EU’s executive, and Brazil, China, Japan, New Zealand, Norway, South Korea and Switzerland had filed a joint complaint against the US safeguard tariffs on steel imports.

The United States said it would appeal the WTO decision and would keep the duties in place.

The WTO decision was rendered by a panel of three independent experts who, after investigating the complaint, rejected US arguments that the tariffs of up to 30 per cent on some steel imports were justified because of increased steel imports that were hurting its domestic steel producers.

Washington had failed to provide a “reasoned and adequate explanation” of a link between increased imports and “serious injury” caused to US producers, the WTO panel report said.

The report confirmed an interim WTO ruling in March that also found Washington to be in breach of trade rules.

The United States slapped three-year tariffs of eight to 30 per cent on selected types of steel imports in March 2002 to prop up its ailing steel industry.

The move prompted anger from steel-producing nations in Asia, Europe and Latin America, all competing in a market suffering from overcapacity.

The US has always insisted that the measures applied on “certain flat steel” products, such as plate, hot-rolled steel and stainless steel wire, did not flout WTO safeguards and tariffs rules.

Friday’s WTO decision starts the clock ticking on the US response. The US now has five days to withdraw the tariffs or to appeal the decision.

If it does neither in the required period, threatened retaliation may occur.

The EU can impose sanctions on more than two billion dollars’ (1.8bn euros’) worth of US products, according to the European Commission.

US Trade Representative spokesman Richard Mills said: “The steel safeguard measures will remain in place” while the ruling is being appealed.

The European Commission last June drew up a list of potential US products to be taxed if Washington failed to conform to the WTO ruling.

That list included orange juice, textiles and steel products.—AFP