WTO Ruling Against US Tariffs Sparks Retaliatory Measures

The World Trade Organization has authorized the European Union and seven other leading American trading partners to impose more than $150 million in retaliatory sanctions on exports from the United States, citing the country's violation of international trade laws. This ruling comes after Congress refused for two years to repeal a tariff subsidy for American companies that the W.T.O. found to be in violation of global trade laws. The decision is the latest example of several cases where Washington has been found to be in breach of international trade rules, adding to the woes of American companies.

Key Takeaways:

• The World Trade Organization has ruled that many tariffs imposed by the United States were in violation of international trade laws, authorizing the European Union and seven other leading American trading partners to impose retaliatory sanctions worth more than $150 million.
• The US has lost several cases before the W.T.O., including one over $3 billion in cotton subsidies and another involving Canadian wheat and lumber, with the Byrd amendment allowing American companies to receive duties imposed on foreign companies deemed to be unfairly dumping products in the US.
• The tariffs could be worth slightly more than 70 percent of the value of the money received by American companies, with the trading partners having the right to impose higher tariffs on their choice of products.
• Japan's economy and trade minister, Shoichi Nakagawa, has stated that Japan will wait until at least the fall before seeking approval of specific actions, while Arancha Gonzalez, a spokeswoman for Pascal Lamy, the European Union's trade commissioner, said the aim is to get the United States to comply with the rules.
• The US has initiated more anti-dumping cases through the Commerce Department than the administration of President Bill Clinton, but the administration has also been criticized for its trade policies, with many seeing the issue as a persistent problem in American politics.
• The dispute over the Byrd amendment is part of a broader fight with other countries over trade policies and whether international trade laws are helping or hurting American companies and workers.
• The W.T.O. has permitted the European Union to impose more than $2 billion in penalties on American companies over corporate tax breaks, with only about $315 million of that being imposed so far.

Statistics:

• $150 million: The value of retaliatory sanctions authorized by the W.T.O. for the European Union and seven other leading American trading partners.
• $3 billion: The amount of money the US has been found to have misappropriated in cotton subsidies.
• $2 billion: The amount of penalties the European Union is permitted to impose on American companies over corporate tax breaks.
• $315 million: The amount of penalties imposed so far by the European Union on American companies.
• 70 percent: The value of tariffs that could be imposed by the trading partners on their choice of products.
• 25: The number of nations in the European Union.
• 7: The number of other leading American trading partners authorized to impose retaliatory sanctions.
• 2 billion: The amount of dollars collected by the US in duties on other products.

Sources:

• The New York Times
• Bloomberg News
• European Pressphoto Agency
• Associated Press
• World Trade Organization
• The Washington Post
• Reuters