The World Trade Organisation was expected to approve today stiff sanctions on US exports, ranging from almonds to ski jackets, intended to punish Washington for failing to repeal the Byrd amendment.
The EU and other plaintiffs sought formal WTO authorisation to retaliate by imposing new duties against various US products. Among the other potential targets are cod, textiles, glassware, mobile homes and apples.
Named after its sponsor, Senator Robert Byrd, the 2000 law was ruled illegal two years ago by the 148 nation WTO – which referees global commerce – following a complaint spearheaded by the EU.
The contested law allows American companies to receive proceeds from duties levied on foreign rivals for alleged “dumping” – selling goods at below-market prices, making it impossible for American producers to compete.
The WTO backed claims that the amendment breaks trade laws by punishing exporters to the US twice because they are first fined, and then those fines are passed on to their competitors.
In August, a WTO arbitrator approved penalties of up to 72% of the money collected from foreign exporters and handed to American companies and said the winners should submit lists of potential targets. Under WTO rules, however, formal authorisation must come from the dispute settlement body.
The EU was joined in its complaint by seven other countries: Brazil, Canada, Mexico, South Korea, Japan, India and Chile.