TOKYO, Nov 11: Japan warned on Tuesday it could take retaliatory measures against US products if Washington fails to terminate its “safeguard” tariffs judged by the WTO to be violating global trade rules.
Economy, Trade and Industry Minister Shoichi Nakagawa suggested the retaliatory measures would not necessarily be against steel products.
“We are considering (retaliation) including products under other ministries and agencies,” he told a news conference, while urging the United States to respond to the World Trade Organization (WTO) ruling “in accordance with the rules.”
The WTO Appellate Body said Monday tariffs by Washington of eight to 30 per cent on selected types of steel imports flouted international rules and should be amended, rejecting an appeal by the United States.
In a written statement issued late Monday, Nakagawa said Japan “highly appreciates” the WTO report.
“The government of Japan will notify the WTO by the end of this month of re-balancing measures equivalent to the adverse effects imposed on it by the US steel safeguard measures unless the United States terminates the measures, deemed inconsistent with the relevant WTO agreements,” he said.
“We fully expect the US to immediately terminate its steel safeguard measures,” he added in the statement.
The view was echoed by the Japan Iron and Steel Federation on Tuesday.
“We strongly hope that the US government will abolish the measures promptly and that a protectionist trend spreading in global steel trade will be corrected,” federation chairman and Nippon Steel president Akio Mimura said in a statement.
US officials said President George W. Bush disagreed with the WTO ruling although he has made no decision on a response.
In the WTO report, a three judge panel said they agreed with a WTO ruling on July 11 that the US safeguard measures introduced in March 2002 were illegal.
The European Union initiated the move against Washington’s safeguard measures and was joined by Brazil, China, Japan, New Zealand, Norway, South Korea and Switzerland in a complaint lodged at the Geneva-based WTO last year.
Meanwhile, China on Tuesday welcomed a World Trade Organization ruling saying US steel tariffs are illegal and called on the United States to do away with the policy in short order.—AFP