[lbo-talk] Trade sanctions on US approved

Tommy Kelly tkelly15450 at charter.net
Fri Nov 26 15:43:21 PST 2004


http://news.bbc.co.uk/2/hi/business/4045979.stm

Trade sanctions on US approved

The World Trade Organisation (WTO) has given Europe, Japan and others the go-ahead to impose sanctions on a number of US companies dumping low-cost goods.* *

The sanctions are in retaliation for the Byrd Amendment, a rule that allows US firms to blow the whistle on "unfair" trade practices.

The $150m (£79m) in fines against the US could be imposed in early 2005.

Most of this will come from the EU and Japan, whose companies have been most affected by the Byrd Amendment.

Both have already presented the WTO with a list of products and goods they plan to hit, ranging from sweetcorn to metals to textiles.

US trade officials indicated that the US was willing to comply with its international obligations on the issue while vigorously defending its trading interests.

*Retaliation*

"We are continuing to work with Congress to bring the US into compliance and we are consulting with our trading partners on these efforts," said Richard Mills, spokesman for US trade representative Robert Zoellick.

"It is important to remember that these issues do not affect the ability of the United States to continue enforcing our trade laws," Mr Mills added.

Canada, which along with Brazil, South Korea, India, Mexico and Chile is involved in the complaint, said it was studying what it might impose sanctions on.

These countries, along with the EU and Japan, argue that the Byrd Amendment gives US companies an incentive to complain and is therefore against WTO anti-dumping agreements.

The US believes that companies that export products at a price below what they normally charge in their home market give unfair competition to domestic producers.

The case is the latest in a string of trade disputes dividing the EU and US.



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