Posted on 04/01/2005 4:02:14 PM PST by nextthunder
EU to slap extra 15% duty on range of US goods
BRUSSELS: The European Union plans to slap an extra 15 percent import duty on a range of US goods over Washington’s failure to apply an international trade ruling against an anti-dumping law, the EU executive said on Thursday.
The duty would hit imports including paper, agricultural, textile and machinery products from May 1, and affect slightly less than $28 million in trade, the European Commission said.
“The Commission took this latest step in the dispute over the Byrd Amendment in light of the continuing failure of the United States to bring its legislation in conformity with its international obligations,” it said in a statement.
The level of EU retaliation would be revised annually to adjust to the level of damage caused to EU companies, it said. While the Commission’s plan needed the formal approval of EU ministers, this was expected to be a formality, officials said, adding there were no plans to meet US officials before the additional duty came into force.
Neither was there a meeting planned between EU Trade Commissioner Peter Mandelson and US Deputy Secretary of State Robert Zoellick — until recently US trade representative — who is scheduled to be in Brussels early next week, they said.
In November, the World Trade Organisation gave approval to the EU, Japan and others to apply an initial $150 million in trade sanctions after Washington failed to conform with a WTO ruling to repeal a subsidy programme for US companies.
Known as the Byrd Amendment, the programme distributes funds raised by anti-dumping duties on imports to the companies that initially requested government anti-dumping protection.
More than $1 billion has been doled out to US ball bearing, steel, seafood, candle and other companies under the Byrd Amendment over the past four years. Canada is expected to announce similar measures against the United States, its top trading partner, later on Thursday.
Mostly textiles: Most of the products to be hit with the EU’s extra duty relate to textiles — trousers and overalls made of synthetic fibres, for example. The only agricultural item is sweetcorn.
Five areas of stationery are also targeted, while in the machinery sector the products listed are crane lorries, along with spectacle frames and mountings. reuters
But what does nafta have to do with the wto?
What we really need is some sharp trade negotiators instead of the dim bulbs that have gotten us into these situations in the first place (Airbus, etc.). We had the chance to go after Airbus several years ago and, at the time, we let it go figuring they would not be a factor. Pretty bad foresight. Unfortunately, I cannot see us reversing any deals that we have already made, but I do hope we don't continue to make stupid deals in the future.
We have the highest productivity and some of the best design and engineering people in the world. As a result, we can compete with anyone when it comes to complex products. Many US manufacturers are bringing their component production back here from China because of quality concerns. We can produce products with sophisticated automation that have higher precision and do it more efficiently. I concede that we cannot compete with these low-cost countries on simple products where labor defines the cost. Let China make paper clips and we can produce jet engines and sophisticated medical devices.
As an aside, I have to admit I wish we still made screws here. The ones at Home Depot are all made in China and are utter crap. I went through a whole box putting up half a dozen shelves the other day. I also bought four lamps - all made in China - and had to re-wire and re-drill all of them. When China does eventually catch up with the rest of the world in terms of quality, their products will no longer be cheap.
I heard someone speak form a large US company that is the world leader in their product area a few months ago, and when asked how his company is able to survive all the foreign competition he said they do not, and will never compete on price. They compete by making the best product and being innovative. He said that as soon as you market your product based on price it is time to hang it up - you are done. I look at all the manufacturers I deal with on a regular basis and the ones that are the most successful follow that same guideline. The lowest price is not necessarily the best value.
The Byrd amendment, however is not a trade deal. It was a budget item put in by Robert Byrd that takes the additional tariffs that are collected as offsets to items that were being dumped here in the US and hands them out to individual companies. It was designed as corporate welfare for his constituents and has ballooned since then. It is expected to reach $3.8 billion by 2014.
I am 100% in favor of free and fair trade. If a company is dumping, they should face penalties in the form of additional tariffs. So the US company gets the benefit of seeing stiff penalties in the form of added tariffs put on their foreign competitors' goods. That's the way it should be, but they shouldn't also get a huge check from the Treasury on top of it. If some of these companies put as much effort into developing new and innovative products, or new ways to market existing products, instead of looking for government checks we would all be better off.
Nice try, but wrong on both counts. I'm a farmer and I know those "massive subsidies" are a myth. Large-scale home builders want white pine from the cheapest source possible, which is Canada. Plus, the only case of Mad Cow Disease in the US was in a calf imported from Canada. Thanks a bunch.
What's dumping?
Do you have a link to this info?
I would tend to agree with you. I too do like corporate welfare at all and the Byrd Amendment should be reveresed asap - but NOT because the EuWTO says so, rather because the CONSTITUTION does!
We can, and SHOULD remove ourselves asap from all of these organizations which usurp soveriegnty in trade matters (and some otheres as well!). The Constitution clearly lays out which branch of OUR government is responsible for decisions regarding trade, and, failing a Constitutional Amendment, they are the only group that has any say in trade matters.
Exporting to the US (or some other country) at a price below cost with the intent of stealing market share and driving competitiors out of business.
Do you have any examples where this actually occurred? I guess after driving competitors under, these "dumpers" would raise prices? You have any examples where this actually occurred?
Wrong. One cannot have Free Trade without open borders. If a nation is going to have a free trade policy with third-world (cheap labor) nations like India and China, that nation, to be competitive, will need a large source of cheap labor-Mexico and the rest of latin America. So you want cheap good from China and outsourcing of your jobs to India? Well your going to have to put up with massive immigration from the South.
The retaliatory surtax will amount to $11.6 million this year.
The announcement of the surtax on cigarettes, oysters and live swine -
(LIVE SWINE? WHAT DO DEMOCRATS HAVE TO DO WITH IT?)-
from the USA came just as the European Union took a similar measure.
Yes. We have the highest record breaking trade deficit in our history, and every month it gets worse. WE will benefit from tariffs, not the rest of the world who has a surplus with US. I agree, bring it on. 20,000 dollars more on every BMW.
...it was a rhetorical question...
We just ordered an Oreck vacuum!
Exactly. Build the wall. Then what would Nebbie whine about?
Please, tell us how cheap Mexican labor helps us compete with China and India. Will these Mexican landscapers allow us to bring back the call center jobs that moved to India? How about those landscapers making goods for WalMart?
You need a mind before you can make up your mind.
I loved the change of subject when I replied to the "we don't make nothing here anymore" with the fact (proof even) that we were the largest exporter. Can't be the largest exporter if you don't make nothing. Turned into a discussion of Made in USA labels. Can't refute the facts, so they make stuff up.
That must come as a shock to the free-traders on this thread. How was I to know that I'm in favor of illegal immigration until you came along to tell me?
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.