EU to impose transatlantic trade sanctions
The European Union said today it proposed to impose sanctions on US products to punish Washington for not repealing an anti-dumping law ruled illegal by the World Trade Organisation.
The European Commission proposed additional duties of up to 15% from May 1 that would affect such products as paper, textiles, machinery and farm produce.
The EU head office said it took its latest step “in light of the continuing failure of the US to bring its legislation in conformity with its international obligations”.
The 25 nation EU has long asked for Washington to repeal the three-year-old legislation and the Bush administration has been working with Congress to bring it into line with its obligations. Yet the EC said it was time to bring further action now.
The EU was joined in its complaint by seven countries, which got authorisation to impose sanctions from the WTO in August, two years after the global trade referee first ruled the US legislation illegal.
The law, known as the Byrd amendment, allows American companies to receive proceeds from antidumping duties levied on foreign rivals.
