WTO Panel to Review US Law on Anti-Dumping Tariff Revenues

A group of countries led by Japan and the European Union filed a joint complaint with the World Trade Organization (WTO) today against a new US law that would award the proceeds of anti-dumping sanctions to the affected industry. The law, championed by Senator Robert Byrd to protect West Virginia's steel manufacturers, was attached to a farm spending bill and signed into law by President Clinton despite his reservations. However, the US trading partners argue that the law gives the complaining industry a subsidy, which is barred by global free trade rules.

Key Takeaways:

• The US law in question changes the anti-dumping law to award tariff revenues to the complaining industry, which could amount to $40 million to $200 million annually.
• Japan and the European Union, which have been fined by American trade officials for selling steel at prices lower than production costs, led a group of nine countries in filing the complaint.
• The countries involved in the complaint are Australia, Brazil, Chile, India, Indonesia, Thailand, South Korea, in addition to Japan and the European Union.
• The US trading partners argue that the law encourages American companies to make claims of dumping to receive a double reward – less competition from imports and income from increased tariffs.
• The complaint will lead to a review by a WTO dispute-resolution panel if agreement is not reached within 60 days.

Statistics:

• The US law in question could award the complaining industry between $40 million and $200 million annually.
• Nine countries, including Japan, the European Union, and South Korea, are involved in the complaint.
• The US trading partners have been fined for selling steel at prices lower than production costs on multiple occasions.

Sources:

• "WTO Panel to Review US Law on Anti-Dumping Tariff Revenues" is based on information from Reuters.
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