WTO upholds steel complaint against US

The World Trade Organization's (WTO) appeals body has upheld a panel decision stating that US Section 201 safeguards violate international norms, the Geneva-based body said in a press statement. The body stated that US measures were inconsistent with the WTO Safeguards Agreement and GATT 1994 but reversed some findings regarding tin mill products and stainless steel wire, which did not affect the overall result. Brazil, China, European Union, Japan, Korea, New Zealand, Norway and Switzerland brought complaints against United States. The latest WTO decision opens the way for these countries to apply sanctions against the US, including up to US$2.2bn by the EU alone. US administration officials said Monday that the ruling was wrong and that the temporary tariffs of initially 30% when they were imposed in March 2002 were meant to give the ailing steel industry a three-year respite to consolidate. "The steel safeguards that the president imposed were to provide our domestic steel industry an opportunity to adjust to import competition, the safeguards were put in place to give our domestic industry an opportunity to restructure and consolidate and become stronger and more competitive, and we believe that they are fully consistent with WTO rules," Scott McClellan, the White House spokesman, was quoted as saying by New York Times.