Brussels, 03/06/2002 (Agence Europe) - On Monday, the World Trade Organisation agreed to establish an arbitration panel to verify the legality of the safeguard provision whereby the United States has placed a surcharge on steel imports since 20 March this year. The decision comes in answer to a request made by the Union, which has itself just adopted the tactic proposed by the Commission consisting of "arming itself" with a first series of counter measures but without "immediate fire" on American trade interests.
Pascal Lamy, Commissioner for Trade, considers the decision taken by the WTO represents a major step forward in Europe's response to the unjustified and highly protectionist measures taken by the United States. Similar requests made by other countries will soon be accepted while, he says, "the rest of the world joins us in urging the United States to dismantle its safeguard provision. I have no doubt that the United States will end up the loser (…). Depending on the result of arbitration procedure, the Commission will continue to take every measure necessary to defend European interests, including keeping pressure on the United States in order to obtain an acceptable package of product exclusions and compensation". The three members of the panel, who will no doubt be appointed within a month, will have one term in which to give their conclusions.
The Fifteen, for their part, continue to hope that they will obtain a compensatory package that is generally satisfying and that they will then not have to decide to carry out their threat of immediate sanctions against American trade, a prospect that does not seem to meet with much enthusiasm. On Friday, within Committee 133, the Council body competent in trade matters, their representatives unanimously adopted the tactic consisting of deferring application of short term counter measures, otherwise foreseen for 18 June, the time it takes for the United States to rule on requests for exclusion presented by European steel suppliers. The regulation establishing eventual retaliatory measures should, however, be adopted before this deadline. After deliberation within the Council, Mr Lamy's spokesperson said that, on implementation of the short list of counter-measures, they agreed that, in the Union's interest, they should envisage a limited reprieve for effective application if this could contribute to the early and constructive resolution of the issue around a satisfactory package including exclusions and compensation. The Commission promised to present within coming days a specific proposal on "deadlines" for implementing the short list that is valued at EUR 370 million.