BRUSSELS - The European Union (EU)'s executive arm proposed slapping sanctions on a range of US products imported into Europe Thursday, in the latest blow in a long-running row over a controversial US anti-dumping law.
Specifically the European Commission called for an extra duty of 15 percent to be imposed on products ranging from paper to farm and textile products, in response to Washington's failure to repeal the so-called Byrd Amendment.
"The Commission took this latest step in the dispute over the Byrd Amendment in light of the continuing failure of the United States to bring its legislation in conformity with its international obligations," it said.
The proposed sanctions, if approved by the EU's 25 member states, would come into effect from May 1.
In Washington, US authorities lamented the EU decision, and vowed to continue efforts to persuade Congress to repeal the law.
"We're disappointed that this step is being taken," US Trade Representative spokesman Richard Mills said, but added: "The United States is working to comply with the WTO decision regarding the Byrd Amendment."
Under the 2000 law, the US government redistributed anti-dumping duties to US companies that alleged dumping, or the selling of items abroad at less than the market price in the domestic market.
The EU and six other countries (Brazil, Canada, India, Japan, Mexico, South Korea) took the case to the World Trade Organization (WTO), which last year authorized sanctions amounting to 72 percent of the sums reaped by the US law.
The EU executive said its proposed level of sanctions was based on the latest distribution of duties made under the Byrd Amendment, amounting to slightly under 28 million dollars.
"This level will be revised annually to adjust to the level of damage caused to EU companies," the commission said.
In addition the EU has drawn up a "reserve list" of products which could become subject to additional import duties if necessary.
The EU commission said that in making its proposal for sanctions it was acting "in close coordination" with its co-complainants -- adding that it expects others to follow its lead.
"The EU understands that Canada will be announcing retaliatory measures against certain products from the United States and expects that other co-complainants will soon join it in applying retaliation," it said.
Washington was targeted by the sanctions request because the US Congress had not repealed the legislation -- named after Democratic Senator Robert Byrd -- before a deadline of December 27, 2003.
US companies gained about 561 million dollars (463.2 million euros) as a result of the law in 2001 and 2002, according to US figures.
But according to the EU commission Thursday, the Byrd Amendment -- full name the Continued Dumping and Subsidy Offset Act of 2000 -- has distributed over one billion dollars in annual payments since it first came into force.
The main recipients have been in the bearing, steel and other metal, household item and food sectors, it said.
It added that a "substantial" increase is foreseen for the next distribution that could start on October 1 this year if the law is not repealed. That payment alone could amount to 1.6 billion dollars, it warned.
03/31/2005 16:05 GMT