European Union and Japan Respond to U.S. Safeguards on Steel
May 14, 2002
The European Union (EU) and Japan have announced their
intentions to provide the World Trade Organization (WTO) with a “short list”
of potential suspensions of concessions they plan to apply in the event the
United States does not immediately remove its safeguard measures on steel. In
March, the United States imposed 30-percent tariffs on steel imports from the
EU and Japan. In the short-term, the EU plans to continue its efforts to
negotiate an agreement with the United States that will include both
compensation and product exclusions from the U.S. safeguard action. The
notification to the WTO preserves the countries’ rights under the WTO
Safeguard Agreement. However, the EU’s list of potential suspensions could be
applied as early as June 18, and Japan’s beginning June 17. All 15 EU Member
states unanimously supported the EU Commission’s decision. However, the move
was strongly opposed by leading European industry groups, which fear an
escalation of the trade dispute.