EU asks US to lift trade barriers

Published November 21, 2002

BRUSSELS, Nov 20: The European Union called Wednesday in an annual report for the United States to lift a host of trade barriers including contentious measures to protect US steelmakers.

The 15-nation EU expressed concern at developments since the 2001 report, including US “failure to comply” with a number of World Trade Organization rulings.

The United States said last month it was appealing against a WTO ruling against the “Byrd Amendment”, which allows US firms to receive compensation paid out of anti-dumping duties levied on their foreign competitors.

Brussels is also unhappy with the reluctance of US lawmakers to comply with WTO rulings in disputes over tax breaks to major US off-shore companies.

The imposition of safeguard measures against steel imports and a new law protecting US farmers were further grounds for worry, the European Commission said in a statement.

“Tackling bilateral trade obstacles is essential to trans-Atlantic confidence-building,” EU Trade Commissioner Pascal Lamy said.

Europe and the United States are embroiled in a tit-for-tat row at the WTO over steel, which each of the economic giants attempting to show that the other’s safeguards are illegal.

The EU erected provisional barriers against a flood of steel imports after the United States announced in March tariffs of up to 30 per cent on selected steel imports, arguing its steelmakers needed more time to restructure.

Washington on Tuesday said it was opening a second consultation period with US steel consumers and foreign producers which want their goods to be exempt from the safeguard measures.

Requests for exemption must be in by December 3, the US Trade Representative and Commerce Department said. In the first consultation round ended in August, 727 foreign steel products were exempted from the duties.

Brussels said it was also concerned about “the potential trade-distorting effects” of several measures enacted by the United States since the September 11 attacks on New York and Washington.—AFP

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