EU imposes more trade sanctions on U.S.
BRUSSELS, Belgium --The European Union imposed $9.1 million in additional retaliatory sanctions against the United States on Monday in response to antidumping measures meant to protect U.S. companies. The World Trade Organization had declared the U.S. rules illegal.
EU Trade Commissioner Peter Mandelson's office said the new measures were justified because U.S. government payments to American companies are scheduled to continue for two more years despite the disputed trade law being repealed in February.
The new $9.1 million in EU sanctions, brings the total amount of penalties levied against the U.S. in response to the disputed trade law to $36.9 million, the European Commission said in a statement.
Since May 2005, Europeans have had to pay more for U.S. clothing, textiles, machinery, paper products and sweet corn as part of the EU trade sanctions.
The EU executive said the measures would counter U.S. government payments to American companies estimated to be worth more than $2 billion over the next two budget years, ending 2008. The U.S. payments are part of a law known as the Byrd amendment, which allows American companies to receive proceeds from antidumping duties levied on foreign rivals.
"As long as the distributions continue, the United States will not be in compliance with WTO rules," the commission said.
Eight new items have been added to the list of U.S. products covered by the punitive 15 percent additional import duty, the commission said. "These products are different types of blankets, paper products, photocopying apparatus and drills," it said.
The Geneva-based WTO ruled the U.S. legislation illegal in 2002 and gave the United States until the end of 2003 to conform. When it didn't, seven countries and the EU were given the option in 2004 to impose sanctions.
The other complainants were Canada, Brazil, Chile, India, Japan, South Korea and Mexico.
The Byrd amendment was approved in 2000 and billions of dollars in payments have been distributed to producers of metals, food and other household items.
The EU said despite the long-running feud over the Byrd Amendment, "the huge bulk of EU-U.S. trade is trouble free."
The two sides continue to spar in world trade talks and have slammed each other's recent proposals over opening up trade in their agricultural sectors.
The EU and U.S. have also come to blows over subsidies and aid it gives rival aircraft builders Boeing Co. and Airbus SAS, a dispute which is currently before a panel at the WTO.
