December 1, 2003	Monday	Shawwal 6, 1424

LONDON: The US sent the first signals on Friday that it is prepared to defuse a dangerous transatlantic clash over steel tariffs, when it asked the EU and its allies to delay imposing tit-for-tat sanctions.

Brussels, which was preparing to strike back at American exports as early as next week, has granted Washington an extra nine days to lift the illegal tariffs. “If the delay allows the US time to withdraw the protectionist measures, that is better for everybody,” said Fabian Delcros, a spokesman for the EU in Geneva.

The rubber stamping of the World Trade Organization ruling on the illegal tariffs will be delayed until December 10. Unless America lifts the tariffs within five days of the ruling, the EU will hit back with $2.2bn of tariffs on exports from electorally sensitive states.

Ending protection for the industry more than a year ahead of schedule could prompt a political backlash against George Bush in next year’s presidential election in the pivotal steel-producing states of Ohio, Pennsylvania and West Virginia.

Bush advisers have apparently concluded that the tariffs are causing more harm than good and that lifting them would boost Bush’s standing with steel consuming industry, another important constituency, industry sources said.

“The only question is when,” said David Phelps, president of the American Institute for International Steel, which represents steel importers.

One possibility suggested by the industry is for the administration to gradually lift the tariffs, but an EU source said yesterday that Brussels would not accept that as a solution.

The EU sanctions have been chosen to have the maximum political impact in states that could be crucial to the outcome of the November 2004 presidential poll.

Japan, which was initially reluctant to make threats, has also announced plans to retaliate on $458m worth of US products ranging from coal to textiles.

Norway, too, has drawn up a battle plan, while Brazil, China, New Zealand, South Korea and Switzerland are considering their response.—Dawn/The Guardian News Service.