WTO lets EU and others hit US with trade sanctions

The World Trade Organisation (WTO) gave final approval on Friday to the European Union, Japan and others to hit the United States with an initial $150 million in trade sanctions in a row over an illegal anti-dumping law. "They've got the go-ahead," Chairwoman of the WTO's Dispute Settlement Body Kenyan Ambassador Amina Mohamed said.
The case, one of a number pitting Brussels against Washington, involves the so-called Byrd amendment, which the WTO has repeatedly said breaks trade rules by handing out duties raised in anti-dumping cases to the US firms.
The opening round of punitive duties - which will be reviewed each year - is relatively modest, when compared, for example, with the $4 billion the EU was awarded in a case over corporate tax breaks. But the figure could soar in coming years.
The administration of US President George W. Bush has called on the Congress to drop the law. But it enjoys wide support among legislators, who see it as a way of punishing foreign companies' accused of dumping or exporting goods at below the cost of production.
The lion's share of the right to retaliate goes to the European Union and Japan, because their companies are the most affected. Brussels has warned it could slap additional duties on the US goods early in 2005 if Washington does not repeal the law.
"We are delighted that the authorisation confirmed our case...We hope that the US will bring the legislation as soon as possible into conformity (with the international rules)," EU Trade Spokeswoman Claude Veron-Reville said in Brussels.
LISTS READY: The green light for sanctions was automatic because the case has exhausted all the WTO steps for settling disputes, including appeals and arbitration. Only a unanimous decision by all the 148 WTO member states, including those seeking the sanctions, could have blocked it.
Both the EU and Japan, given the right to additional levies of $50 million and $80 million, respectively, by arbitrators, have presented the WTO with a list of products they plan to hit - ranging from sweet corn to metals and textiles.
Canada, which along with Brazil, South Korea, India, Mexico and Chile is also involved in the complaint, has said that it is studying whether to impose sanctions and on what.
The US amendment has been applied to billions of dollars of imports of Canadian softwood, the subject of a separate dispute between the two North American neighbours.