EU mulls sanctions on US next year

Published November 18, 2004

BRUSSELS, Nov 17: The European Union could slap sanctions on the United States early next year if Congress fails to abolish an anti-dumping measure ruled illegal by the WTO in the next 10 days, a spokeswomen for the EU executive commission warned here Wednesday.

The EU on Tuesday presented the Geneva-based World Trade Organization with a list of US products that could be hit with extra duties, focusing on what spokeswoman Arancha Gonzalez described as sensitive items designed to catch the attention of US lawmakers.

They include textiles, electric-powered tools, paper goods, shoes, photocopiers and sweet corn. The outgoing Congress "has this week and the next" to eliminate an amendment introduced by Senator Robert Byrd allowing US companies that brought anti-dumping charges against foreign competitors to collect the subsequent duties imposed on them by US authorities, Gonzalez said.

The amendment was deemed in violation of international trade rules in January 2003 by the WTO. "We hope the US Congress repeals this piece of legislation, which has been declared illegal and that we can prevent sanctions being imposed," said Gonzalez.

"My feelings are that sanctions could enter into force at the beginning of next year," she said. "There is still a chance that US changes the legislation," she added. "If not, we will have no other alternative."

A final deadline for applying the trade sanctions will be set at a meeting with the WTO in Geneva on November 24. The EU together with a number of other complainants - including India, Brazil, Canada, Japan and South Korea - was authorized in August this year to apply countermeasures in the form of increased duty on US imports. -AFP

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