November 12, 2003

EU wins in steel case with US

Hopefully, the U.S. will withdraw the tariffs and this will not degenerate into a full blown trade war led by special interests who benefit from proteccionism:

The US could be faced with huge sanctions following a World Trade Organisation (WTO) ruling on Monday that Washington's tariffs on steel imports were illegal.

The WTO's announcement is a victory for the EU and puts fresh pressure on the Bush administration to withdraw the tariffs.

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Pascal Lamy, the EU Trade Commissioner, said that the EU would slap tariffs of between 8 percent and 30 percent on $2.2bn (€1.9bn) worth of US imports beginning on December 15, unless the US removed the steel tariffs, reports the Financial Times.

The sanctions would be the biggest in the history of the WTO.