GENEVA -- The European Union informed the World Trade Organization it will raise sanctions against U.S. products because Washington continues to distribute antidumping funds to its companies in violation of international commerce rules. EU trade negotiator Raimund Raith said a 15% surcharge will be extended to 32 new categories of U.S. exports on May 1 to penalize the U.S. for failing to halt payments to industries under a law known as the Byrd amendment. The law, which allows U.S. companies to receive proceeds from antidumping duties levied on foreign rivals, was ruled illegal by the WTO in 2002 and repealed by the U.S. two years ago. In a compromise with companies, the Senate allowed for the distribution of funds to continue until October of this year. The EU complains that the payments could actually continue for many more years.
The 27-nation bloc "would like to ask again the United States if and what steps it intends to take to stop the transfer of antidumping and countervailing duties to its industry," Mr. Raith told the WTO's dispute settlement body. He said the sanctions would be directed against U.S. paper products, plastics, textiles, pens, footwear and mobile homes. The measures will bring the total level of retaliation to $81.19 million, Mr. Raith added. The U.S. didn't make public its statement from the WTO meeting, which was held behind closed doors. The Byrd amendment was approved in 2000 and hundreds of millions of dollars in payments have been distributed to producers of metals, food and other household items. Japan, which was part of the same WTO case, said it was unfortunate that the EU had to increase retaliatory measures. "However, under the transitional clause, the illegal distribution continues and will continue for years to come," Japanese negotiator Koji Saito told the WTO, adding that Tokyo would maintain its current level of sanctions on U.S. products "in order to induce full compliance by the United States in this dispute."
The trade body authorized the EU and seven other countries in 2004 to impose penalties against Washington because of the amendment. More than $380 million already have been distributed to U.S. companies under the law, according to the EU, which says that $113 million of that sum was collected on its products.
