Free Republic

US goods set to double in price as Europe plans huge trade war By Stephen Castle in Brussels 11 November 2003 American jeans, Florida orange juice and dozens of other US products could double in price from next month because of a growing transatlantic trade war. The World Trade Organisation gave the European Union permission yesterday to impose huge import tariffs, which will allow price increases of between 8 and 100 per cent on a range of goods. The row, which began when America imposed special duties of up to 30 per cent on European steel last year, reached a...

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...

<p>GENEVA — U.S. duties on imported steel (search) introduced last year are illegal under international trade rules, a World Trade Organization (search) appeals panel ruled Monday, according to trade officials.</p> <p>The panel upheld the major findings of a July ruling -- issued after a complaint from the European Union (search) and seven other countries -- that said the duties break WTO rules, the officials said on condition of anonymity.</p>

<p>GENEVA (AP) -- U.S. duties on imported steel introduced last year are illegal under international trade rules, a World Trade Organization appeals panel ruled Monday, according to trade officials.</p> <p>The panel upheld the major findings of a July ruling -- issued after a complaint from the European Union and seven other countries -- that said the duties break WTO rules, the officials said on condition of anonymity.</p>

Mon November 10, 2003 08:23 AM ET GENEVA (Reuters) - The World Trade Organization (WTO), in a final ruling, on Monday rejected an appeal by Washington against an earlier finding that hefty U.S. steel import duties violate international trade rules, diplomats said. The European Union says it is ready to hit back with up to $2.2 billion in sanctions against U.S. goods unless Washington quickly removes the duties imposed in March 2002.

The European Commission today announced that it would slap tariffs worth hundreds of millions of dollars on American imports. The move could see EU member states impose $200 million (£120m) of duties on American products coming into the bloc beginning in March 2004. The trade sanctions are an attempt by the commission to overturn a US corporate tax scheme that allows American firms to benefit from reduced export taxes. The tax scheme, known as the Foreign Sales Corporation (FSC) scheme, was ruled illegal by the World Trade Organisation (WTO) in January 2002 as it was seen as giving an unfair...

<p>Last week, the House Ways and Means Committee held hearings on legislation to impose tariffs on Chinese imports. While such action is unlikely, it shows the political pressure to do something about growing imports from China is increasing. However, emotion rather than economics is driving the agenda.</p>

The European Union (EU)has said it will press ahead with plans to retaliate against US tariffs on steel imports if the World Trade Organisation (WTO) rules in its favour next week. EU trade commissioner Pascal Lamy said punitive tariffs on a range of US imports could be in place by the middle of next month in the event of a favourable ruling. "If the US does not move, retaliation is a racing certainty in mid-December," he said. The WTO is due on Monday to deliver its verdict on an appeal against its original ruling that the US steel tariffs breach...

<p>WASHINGTON — With a tight re-election bid next year, political experts say President Bush already faces a classic political conundrum: deciding which constituency in key rust belt and Midwestern states he can afford to alienate — those who produce steel or the ones who build with it.</p>

THE LEADER Rough trade from the US Almost forgotten among the hubbub over the Iraqi war is the last bout of diplomatic fisticuffs between Europe and America. On 5 March 2002, George W. Bush issued Presidential Proclamation 7529, placing tariffs of 30 per cent on imported steel in an attempt to protect the fading American steel industry. At the time, this magazine warned that no good would come of the measure, and so it has proved. The US International Trade Commission, a federal agency which advises the US government on trade issues, has just published a report on the effects...

For education and discussion only. Not for commercial use.President Bush´s upcoming decision on maintaining steel tariffs is usually described as a classic case of good economics clashing with good politics. Eliminate or gut the tariffs, and the president pleases Wall St., the media, steel-using industries, and economists nearly everywhere. But keeping the tariffs can help keep Bush in the White House by catering to voters in key 2004 battleground states like Pennsylvania and Ohio. In fact, preserving the tariffs is a no-brainer for Bush economically as well as politically. For the recent debate on this issue makes clear that the...

<p>Less than two years ago, Shenango Inc., a small Neville Island coke manufacturer, was on the verge of filing for bankruptcy for the second time in less than a decade.</p> <p>"Going into 2002, we came as close to dying as you possibly can in business," said Shenango President Andrew Aloe. "I call it our near death experience."</p>

Monday, September 29, 2003 By Steven HarmonThe Grand Rapids Press West Michigan steel processing companies hurt by tariffs imposed by President Bush 18 months ago are hoping their fortunes turn this fall. They are urging Bush to halt the 30 percent tariff on foreign steel imports -- before the World Trade Organization is expected to rule them illegal in November, and before the issue becomes a political problem. "I think the president sees this may be one of the biggest political blunders he's ever made," said Merle Emery, president of GR Spring &Stamping, a small Grand Rapids steel processing company...

President Bush, titular head of the party of free trade, made a bid for jobs and votes a year ago last March by abandoning his principles and laying on import duties to protect the domestic steel industry. The move backfired. Though some jobs were saved in steel, even more were lost or jeopardized in industries that use steel because prices went up. Now in a quandary over whether to keep or roll back the duties, Bush needs to return to his party's first principles and cast his lot with competition. Having made the wrong turn in 2002, he won't find...

The U.S. International Trade Commission (ITC) released a report last week of a study of the effects of the steel tariffs implemented by the Bush Administration in March 2002. The study confirms that steel tariffs have done more harm than good. The Commission reported that in the first year alone, steel tariffs cost the U.S. economy $680 million, with a $190 million price tag in lost profits for steel-using companies. The report also states that 34% of companies surveyed said employment would improve if the tariffs were lifted. The report is at: http://www.usitc.gov/er/nl2003/er0919aa1.htm

<p>Steeling Our Wealth Bush's tariffs deal the economy a $680 million hit.</p> <p>Long ago we characterized President Bush's imposition of steel tariffs in 2002 as the single worst decision of his Presidency. Now someone's finally put a price tag on it. According to a just-released report from the International Trade Commission, in their first year U.S. steel tariffs inflicted a $680 million hit on an already struggling U.S. economy.</p>

<p>Owners of small manufacturing companies who generally vote Republican but have been hurt by U.S. steel tariffs threatened Monday to stay home on Election Day 2004 rather than vote to re-elect President Bush.</p> <p>The comment from an industry organization followed a review of the tariffs' impact, released Friday by the U.S. International Trade Commission, that concluded the slumping economy appears to have hurt steel consumers as much as the steep Bush-ordered sanctions did.</p>

<p>Steel tariffs imposed by President Bush last year probably had a slight negative impact on the economy, the U.S. International Trade Commission said in a report released last night.</p> <p>But the tariffs also gave steelmakers a chance to regain footing in a competitive world market and did not drastically harm small steel consumers, the report said.</p>

WASHINGTON — A federal trade panel released findings Friday showing steep tariffs on imported steel have not drastically hurt small steel-consuming businesses, easing a potential political problem for President Bush's re-election strategy.While "overall employment of steel-consuming industries generally fell or remained flat" in the year after the tariffs were enacted, "in many cases, employment fell by a greater amount (and percentage) in the year before the safeguard measures were implemented than in the first year after they were implemented," stated the U.S. International Trade Commission review released Friday night.The ITC midpoint review of the tariffs outlines their impact so far...

<p>Steep tariffs on imported steel imposed 18 months ago have not significantly hurt small steel-consuming businesses, a federal trade panel concluded in a report released Friday that could bolster President Bush's re-election strategy.</p> <p>Many steel consumers "had difficulty distinguishing between the effects of the (tariff) safeguard measures and other changes in market conditions," the U.S. International Trade Commission stated in its report.</p>