By Bruno Waterfield - 30th March 2005
EU sanctions against illegal US anti-dumping laws will bite this May, the European Commission announced on Thursday.
Brussels has proposed that a punitive 15 per cent levy will hit a range of US products on May 1 2005 following Washington’s failure to scrap the ‘Byrd Amendment’.
US Trade Representative Richard Mills expressed “disappointment” at the commission’s move.
“The US is working to comply with the WTO decision regarding the Byrd Amendment. It's important to remember that the WTO decision in the dispute does not affect our underlying trade laws,” he said.
“The US will continue to vigorously implement our trade laws to make sure Americans are treated fairly.”
The commission measures must first be agreed by EU governments over the next four weeks.
The US Continued Dumping and Subsidy Offset Act of 2000 – the so-called Byrd Amendment - was first ruled illegal by the WTO in January 2003 and given an December 2003 expiry date.
Washington failed to ditch the Byrd Amendment, which gives compensation levied against foreign companies undercutting the US market back to domestic firms who have brought the complaint to US authorities.
In November 2004 the EU was given the green light to impose retaliatory measures by the WTO.
Measures in the form of additional levies will be “based on the latest distribution of duties made under the Byrd Amendment and is slightly below $28 million (€21m)”.
“This level will be revised annually to adjust to the level of damage caused to EU companies,” said a commission statement.
“This is motivated by the important variation in the Byrd disbursement made each year by the US.”
The US has handed out over $1 billion in four annual distributions to US companies since 2000.
“A substantial increase is foreseen for the next distribution that could start on October 1 2005 if the Byrd Amendment is not repealed,” said the commission.
“That distribution alone could amount to US $1,6bn.”
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