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Brussels, Ottawa agree on a ''joint approach'' on WTO-approved import sanctions

BRUSSELS, Belgium - 12/30/04 - The European Union and Canada will reportedly cooperate to "maximize" the impact of the sanctions they plan to impose on the US in retaliation for Washington's inaction in repealing the so-called Byrd Amendment.

The controversial amendment - which went into effect in 2000 - allows US companies that claim "injury" from foreign imports "dumped" on the US market to claim a share of the duties levied by the US government on those goods. 

Canadian Trade Minister James Peterson and EU Trade Commissioner Peter Mandelson agreed last week on a "joint approach" during talks at EU headquarters, just a month after the World Trade Organization (WTO) authorized punitive duties on US exports over the dispute.

"Our officials will be working very closely with Peter's to coordinate what lists [of targeted US products] we come up with initially and when we start imposing retaliatory measures as authorized by the WTO," Peterson said.

Products that could be targeted include US-produced cod, whiskey, glassware, cigarettes, beer, mobile homes, heavy construction equipment, and industrial machinery.

The 148-member WTO gave the go-ahead late last month for the EU, Canada and six other complainants - Brazil, Japan, Mexico, South Korea, India, and Chile - to introduce the punitive sanctions after Washington failed to repeal the amendment.

The 25-nation EU, Japan, South Korea, India, and Canada have already submitted a list of US exports that could be sanctioned as early as this coming January or February.

The value of the sanctions has yet to be determined, but trade officials have said they could amount to more than $150 million a year.
 
US trade officials have repeatedly said Washington will comply with the ruling declaring the law illegal and remove the need for sanctions.

At the same time, Mandelson said the EU would stick to a plan to end on January 1 tariffs imposed on US goods in response to the corporate tax breaks granted under the now defunct Foreign Sales Corporation (FSC) and its successor, the Extraterritorial Income Act (ETI).

However, he said a new American tax law still falls short of EU requirements and warned the sanctions could be reintroduced if the WTO rules that European concerns are "justified."

Peterson and Mandelson said talks would start early in 2005 on easing trade between Canada and the EU.
 
The EU is Canada's second-largest trading partner, taking-in a full 6% of its total export volume in 2003.

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Is Beijing Listening?

04/26/05 – The Coalition of Service Industries (CSI) has held discussion meetings with top Chinese officials to ''encourage China to take a leadership role at the WTO commensurate with its increasing economic strength as one of the world's largest trading powers;'' Chinese exports ''are surging, especially for textiles and other manufactured goods, and Beijing can shrink the trade gap by importing more insurance, banking, telecommunications, express delivery, and other services,'' says delegation head Norman Sorensen, chairman of CSI and president & CEO of Principal International Inc.