Brussels/Washington, 14/07/2003 (Agence Europe) - The United States are to appeal the decision by the World Trade Organisation's panel against higher duties imposed on foreign imports since March 2001. Pending this judgement- which will be the final word in the dispute opened by the Union, China, Japan, Brazil, Switzerland, Norway, South Korea and New Zealand, Washington intends to keep these safeguard measures in place, indicated Richard Mills, the spokesman for the Trade Representative, whereas from the European side, it has been reiterated that "re-balancing" duties are to hit up to 2.2 billions of American exports to the single market, including 600 million dollars' worth of steel and textile products.
"We are pleased to see that the panel has rejected several attempts to call into question the safeguard measures which the President (Bush) imposed on steel products", but "where the panel pronounced itself against the United States, we disagree and will appeal", said Mr Mills. He repeated the American position: "the safeguard measures are allowed under WTO rules. Several countries use them", and "we believes that the steel safeguard measures are in line with our international obligations". The United States remain convinced that the justifications made during the American procedure (Section 201 of the trade legislation) fulfil the tolerance conditions set by the multilateral agreement on safeguards. From the American point of view, the proof of this is that "in conformity with American law and WTO rules, the safeguard in question is a temporary measure, to help national producers adjust to competitions from imports". The justification continues: - the level of duty is reduced by 20% each year; - the safeguard measures "are already working", allowing national industry to reach an "unprecedented level of consolidation and restructuring in the last year, making it more competitive with imports"; President Bush has "minimised the potential negative effects of these measures by excluding steel products (727 exclusions were granted last year and 295 last March) if exclusion does not undermine the safeguard". As to exemptions granted to free-trade zone partners (Canada, Mexico, Israel and Jordan)- a gesture disapproved of by the panel, the Office of the Trade Representative claims these are in line with "WTO rules and our own policy of assisting developing countries". "The Administration has shown its willingness to defend and to use these laws, and other trade remedy laws", says Mr Mills, continuing: "We will continue to consider requests for safeguard measures from domestic producers".