Posted on 11/10/2003 11:52:18 AM PST by veryone
WTO urges US to make steel tariffs comply with international rules
The World Trade Organisation (WTO) said Monday that US tariffs on some steel imports flouted international rules and should be amended, rejecting an appeal by the United States.
"The appellate body recommends that the dispute settlement body request the United States to bring its safeguard measures, which have been found in this report ... to be inconsistent with the agreement on safeguards ... into conformity with its obligations," a statement by the three-judge panel said.
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.
The three judges largely agreed with a WTO decision on July 11 that the tariffs introduced by Washington in March 2002 were illegal.
At that time, the United States contested the ruling and vowed not to give up its three-year tariffs of eight to 30 percent on selected types of steel imports designed to prop up its ailing steel industry.
NEW YORK, Nov 10 (Reuters) - Shares of U.S. steelmakers fell Monday after the World Trade Organization (WTO) ruled that U.S. steel import duties violate trade rules, increasing pressure on Washington to withdraw them or face retaliation.
As a result, the Standard and Poor's Steel index <.GSPSTEEL> slipped nearly 2 percent in midday trade since the tariffs are designed to protect steel makers. AK Steel Holding Co. (nyse: AKS - news - people) led the decline, with shares falling as much as 10 percent.
The European Union is threatening to hit the United States with some $2.2 billion in duties on U.S. goods in December unless President George W. Bush quickly withdraws the tariffs.
The EU, along with a U.S. association of steel using industries, urged the president to drop the controversial tariffs, imposed by the administration in 2002.
The ruling also hit steelmakers such as Nucor Corp. (nyse: NUE - news - people), Worthington Industries Inc. (nyse: NUE - news - people) and U.S. Steel Corp. (nyse: NUE - news - people), whose shares fell 1.51 percent, 1.94 percent, and 2.17 percent, respectively.
The steel conflict is one of a number of high-profile disputes involving the United States and the EU and which threaten to further sour the mood at troubled WTO talks on lowering barriers to world trade.
The United States argued the steel duties, which were initially for up to 30 percent but which have been lowered, were needed to protect producers against a flood of cheap imports.
Our tax structure was never meant to be a means of buying votes. Tariffs allowed America to become the industrial giant it was. We've been steadily going downhill since they were abandoned for income tax and fiat money.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.