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The bloc will impose an extra 15% import duties on selected US products May 1

BRUSSELS - 03/31/05 - The European Union (EU) has said it will impose an extra 15% import duty on a select range of US-made products in response to Washington's failure to apply a World Trade Organization (WTO) ruling and dismantle the controversial Byrd Amendment subsidy mechanism.
 
According to press sources, the proposed extra duties would affect "targeted" US exports including paper, certain farm products, textiles, and machinery components starting May 1, and affect approximately $28 million in trade.

The level of EU retaliation would be revised annually to adjust to the level of damage caused to EU companies, the 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," the European Commission said in a press statement.

The 25-nation EU has repeatedly asked Washington to repeal the legislation over the past several years.

The Bush Administration has been working with Congress to bring it into line with its obligations, but the failure to comply with the WTO mandate, said the Commission, made it "time to bring further action."

Last November, the Geneva-based WTO approved a petition filed by the EU, Japan, Brazil, Canada, India, Japan, Mexico, and South Korea to apply an initial $150 million in trade sanctions on selected US-sourced products after Washington failed to conform with a WTO ruling to repeal a subsidy program for US companies.

Known as the Byrd Amendment - named for its sponsor, Sen. Robert Byrd (D-West Virginia) - the program redistributes anti-dumping duties to the US companies that alleged dumping, or the selling of items abroad at less than the market price in the domestic market.

Over the past four years, more than $1 billion has been handed-out to US ball bearing, steel, seafood, and candle companies and others under the controversial amendment over the past four years.

Sources have also said that Canada - the US' top trading partner - is also expected to announce similar measures against the US, the Commission said.

The EU, it said, "understands that Canada will be announcing retaliatory measures against certain products from the United States and expects that other co-complainants will soon join it in applying retaliation."
 
The Commission said there were no meetings with US officials on this or any other matters planned ahead of the May 1 deadline.

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