WTO/Byrd amendment

[Ian Murray <seamus2001@xxxxxxxxx>]

Posted on Fri, Jun. 13, 2003

WTO Gives U.S. Deadline to Repeal Law
Associated Press

GENEVA - A World Trade Organization arbitrator Friday gave the United
States until Dec. 27 to repeal a U.S. law giving American companies the
fines collected from foreign firms they accused of unfair pricing.

The decision follows an earlier ruling - upheld on appeal - that the law
breaks international trade rules.

Arbitrator Uasuhei Taniguchi decided that 11 months was a "reasonable"
period after the United States and the countries which brought the case
failed to agree on the time needed to repeal the law.

Washington claimed it had to have 15 months from the date in January that
the ruling was adopted by the WTO, while the complaining countries said
six months was enough.

Under legislation passed in 2000, hundreds of millions of dollars in fines
collected by the U.S. government have been handed over to companies that
lodge complaints against foreign exporters judged to be selling products
at artificially low prices.

The U.S. steel industry was the major beneficiary, while other recipients
included makers of pasta and candles.

The law provoked formal complaints from the 15-nation European Union,
Australia, Brazil, Chile, India, Indonesia, Japan, South Korea, Thailand,
Canada and Mexico. They claimed that the law punishes exporters to the
United States twice because first they are fined and then those fines are
handed to their competitors.

They said the U.S. rules allow the money to be used for a wide range of
purposes, including purchase of equipment, research, training, health care
and pension benefits