More EU/US trade wars?
As well as the current additional duties that are being levied on certain products imported from the USA, there is the possibility of more EU action that could lead to increased duties on US imports.

The EU, and other countries, have applied to the WTO to take retaliation against the US for continuing to breach WTO rules. In January 2003, the WTO ruled that the US procedure for giving the anti-dumping duties collected to the companies who may be harmed by the dumped imports (known as the Byrd Amendment) was illegal. It gave the US until 31 December last year to repeal this but the US has not done so.

In the next few weeks, WTO will rule on the level of retaliation that the EU can take. The Commission will then draw up the list of goods, level of additional duties and date of implementation. While none of this information is yet available, the Commission has advised that it will use the same list of products drawn up last year for retaliation against the US in the ‘Steel War’. Fortunately, those duties were not levied as the US repealed its offending legislation. However, the products that could be affected include watches, spectacles, paper products, brushes, pens and many more manufactured goods as well as textiles, footwear and foodstuffs.

Barbara Scott
20 May 2004

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