PARIS, Sept 14: Steel-producing nations have failed to reach agreement at talks in Paris on how to eliminate steel subsidies and other trade obstacles, with the United States and the European Union clashing over import tariffs.

The United States had said before the three days of working-level talks it hoped to gain support for its proposals for removing tariffs and other market access barriers deemed to have a dampening effect on trade.

No consensus was reached by the DSG, or disciplines study group, said the chairman of the talks, hosted by the Organisation for Economic Cooperation and Development (OECD), in a draft internal report obtained by Reuters.

On the issues of price-dumping, subsidies, and “safeguard” import tariffs, the report added, On these issues, the comments reflected widely diverging views and strong disagreements. The report goes to a higher level group due to meet in December.

The United States put forward its plan just six months after US President George W. Bush slapped hefty tariffs ranging up to 30 per cent on US steel imports to help domestic firms get back on their feet after a string of bankruptcies.

Although the US plan called the nearly 40 countries present to agree to eliminate tariffs and other market access barriers that “have a dampening effect on trade,” Washington said it opposed any steel industry-specific talks on “safeguard” duties like those Bush imposed.

However, at a news conference held after the talks, the European Commission’s representative said the use of such safeguards could go against the United States’ objective of eliminating distortions in the global steel market. The excessive use or misuse of... safeguard measures in the steel sector is a significant market distortion and certainly at several stages during the meeting this was highlighted, said Christopher Ford, the European Commission’s representative.

The talks came shortly before Europe decides whether it will retaliate against the hefty US tariffs.

When the head of the US delegation, Faryar Shirzad, was asked whether he thought safeguard measures distorted the market, he replied, “No.”—Reuters