WORLD TRADE Organisation (WTO) experts ruled against the United States (U.S.) yesterday in a long-running row with the European Union (EU) over special U.S. duties on carbon steel products from Britain and Spain.
The three-man team also recommended that the 148-nation WTO's Dispute Settlement Body (DSB) call on Washington to come into line over the issue.
The experts, sitting as a compliance panel, found that U.S. amendments to the way Washington applied the duties to British and Spanish products after losing an earlier case brought by the EU did not comply fully with WTO rules.
But they found that the U.S. methods of assessing new duties on carbon steel flat products from France were in order.
The Office of the United States Trade Representative (USTR) contended later yesterday that the ruling was at worst a mixed result for the United States.
MIXED FINDINGS
"The findings of the panel are mixed, though largely favourable to the United States," said USTR press secretary Neena Moorjani.
"The panel rejected the majority of the EC's claims that the United States failed to comply with the DSB's ruling and recommendations. The panel did find that Commerce should have taken more evidence into account in two of its redeterminations," she added, saying both the United States and the EU had the option of appealing the result.
The case dates back to when the EU challenged the United States in the WTO over duties Washington imposed on carbon steel goods to make up for what it argued were effective continuing subsidies to former state-owned steel firms in Europe.
A dispute panel and appeals judges in 2002 and 2003 found largely in favour of the EU complaint, which was backed by Brazil, and U.S. officials said they would implement the recommended changes.
But last year Brussels said changes in the application of the U.S. duties still violated WTO rules - and won agreement from other WTO members to set up the compliance panel.
