WTO report comes out against tariffs by US government

A WTO report published in Geneva, Switzerland Wednesday ruled against the US over tariffs imposed on European steel imports.

The report by an expert panel concerns US measures against privatised European steel companies from Britain, France, Germany, Italy, Spain and Switzerland that were imposed gradually between 1987 and 1998. Washington claims these companies received unfair state aid just prior to privatisation.

The US tariffs, which are separate from US levies introduced in March imposing between eight and 30 percent on certain imported steel products, have already been criticized by the EU.

According to the final WTO panel report, dated June 19 but released to all WTO members on Wednesday, "The US department of commerce did not examine whether the privatization that occurred after the original imposition of countervailing duties, was at arm's-length and for fair market value.

"Thus the US failed to determine whether the privatized producers received any benefit from the financial contributions previously bestowed to the state-owned producers."

Washington have concluded "that no benefit resulting from prior financial contribution continues to accrue to the privatized producer," the report continued.

European trade commissioner Pascal Lamy hailed the reports findings.

"I welcome the decision by the WTO confirming the inconsistency of the US law with WTO obligations. I call again upon the US to promptly implement the panel findings and lift all WTO incompatible duties, so that European exports will be purchased at fair and competitive prices," Lamy said in a statement from Brussels.

The waves of privatisations in the sector followed the restructuring of the European Steel market in 1987-88 and again in 1998. The EU called on Washington to enter talks on the steel issue in November 2000.