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Europe Daily Bulletin No. 8010
GENERAL NEWS / (eu) eu/united states

No agreement in sight over steel

Brussels, 19/07/2001 (Agence Europe) - The United States will not renounce the compensatory duties on steel imports from the Union, indicated the Secretary of State for Trade Don Evans, the day after the visit by Commissioner Pascal Lamy to Washington.

It appears that we are not in agreement with them, indicated the American head during a press meeting, over the controversy with the EU over the legality of anti-subsidy measures that affect former European State steel producers and their relationship with the British Steel case, that they had won in the WTO. Some things may be resolved, others not, he noted while adding: There is a procedure for this and they should move to the fore in this procedure. The eve, Mr Lamy had confirmed that, for lack of an amicable solution, the Union would demand the establishment of a arbitration panel in Geneva.

Concerning the investigation launched at the beginning of the month into steel imports in the United States, the Commission made the distinction between the bilateral and multilateral aspect of the American move. We have a negative reaction to the semi-protectionist attitude represented by the use of section 201 (capable of leading to import restrictions to protect American industry: Ed.), but our reaction is positive towards the idea of having a form of consultation and exchange of rules or points of view within the OECD, to the extent that the steel market is a world market. The United States is putting pressure on other producer countries to take part in consultation over the overcapacity in the sector. The last attempt to find a modus vivendi on steel production at the international level failed in 1993 after four years of negotiations.

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