EU approves retaliation for US Byrd Amendment
Foreign ministers of European Union's 25 member states voted on April 25, to impose an extra 15% duty on US products ranging from paper to farm and textile products. The move comes in response to Washington's failure to repeal the Byrd Amendment (or Continued Dumping and Subsidy Offset Act of 2001), named after Democratic Senator Robert Byrd. Should the EU stay the course, the sanctions would take effect May 1.
The EU, plus
Brazil,
Canada,
India,
Japan,
Mexico, and South
Korea, took the case to the World Trade Organization, which last year approved sanctions amounting to 72% of the sums reaped by the US law. An EU executive stated its proposed level of sanctions is based on the latest
distribution of duties made under the US law, amounting to almost $28 million.
The EU has warned it may possibly revise the list of sanctions depending on damage caused to European companies. It has also compiled a list of other products it could, should it deem it necessary, add to the import duties list.
Canada announced it too will impose an additional 15% duty on a variety of US products.
In 2001 and 2002 the law is estimated to have brought US companies about $561 million but, according to EU Commission, since its inception the Byrd Amendment has distributed over $1 billion in annual payments to various market sectors such as steel, food, and household items. It further warned that a “substantial” increase to $1.6 billion could occur in the next
distribution if the law is not repealed.