rnsa: [WTO] [India/U.S.] WTO empowers India to retaliate against US

rnsa: [WTO] [India/U.S.] WTO empowers India to retaliate against US

Trade row: WTO empowers India to retaliate against US
Navhind Times - Panjim,India
December 2, 2004
http://www.navhindtimes.com/stories.php?part=news&Story_ID=120223
UNI New Delhi Dec 1: The World Trade Organisation has authorised India, EU and five other countries to impose retaliatory measures against the United States in a trade dispute relating to a US anti-dumping law, popularly known as the Byrd amendment.

India, EU, Brazil, Canada, South Korea, Japan and Mexico had complained to the dispute settlement body (DSB) of the WTO against the Byrd amendment describing it illegal.

The US anti-dumping law allows the distribution of anti-dumping and countervailing duties to the US companies that brought or supported the complaints.

India and other complainants argued that the Byrd amendment created an undue incentive for US industries, especially in the steel sector, to seek the imposition of duties on imported goods, improving their competitive position and assisting them in the form of cash payments.

The DSB had ruled that the controversial law constituted a double penalty on non-US competitors and was illegal.

A total of $ 231 million was distributed in 2001 and around $330 million in 2002. It is estimated that distribution for 2003 would amount to about $ 240 million.

If the US does not bring its legislation into conformity with its international obligations, the complainant can impose retaliatory measures, according to WTO officials.

The seven complainants argued that the US still had not implemented the DSB recommendations after the expiry of the implementation time on December 27, 2003 and that sanctions were the only tool left to them to get the US to comply.

The level of suspension of concessions would be consistent with the arbitrator’ decisions issued on 31 August 2004.

The US reiterated its intention to comply with the DSB rulings and emphasised that it would not be necessary for complainants to exercise that authorisation.

The US also expressed its concerns regarding the arbitrator’s decisions on a varying level of suspension on an annual basis. It worried that these annual adjustments would suggest unpredictability.

“The DSB agreed to grant authorization to suspend the application to the us of tariff concessions and other obligations, as provided in the decisions of the arbitrator, in response to the requests by the seven countries in documents”, the WTO statement said.