Brussels, 29/08/2002 (Agence Europe) - The United States is calling on the World Trade Organisation (WTO) to verify whether the safeguard mechanism set in place by the Union in March is legal, although the USA has itself taken safeguard measures with an almost total foreclosure effect on its steel market (see EUROPE of 28 March). In this new chapter in the conflict in which each party seems to alternately blow hot and cold, the panel's request, notified by Washington on 19 August this year, has been formally presented to the Dispute Settlement Body, which is holding its first session after the summer break this Friday. It is likely that the lack of consensus around the table will force Washington to review its request, to be automatically endorsed during a forthcoming session. Once accepted, the request will open the preliminary, consultative phase of multilateral arbitration procedure.
The Union, for its part, continues its attack in Geneva against US surcharges on steel imports, as does Japan and six other countries whose grievances are being examined by one and the same panel of experts. It also maintains, until further order, its threat of "immediate" sanctions on US deliveries worth EUR 378 million despite exemptions granted over the past months to half of the European products initially covered. According to the local press, however, which cites Trade Ministry sources, Japan is now inclined to give in. It had set itself the deadline of August for deciding whether or not to launch its retaliation project without waiting for the Geneva judgement on substance.