buying time on trade sanctions

[Eubulides <paraconsistent@xxxxxxxxxxx>]

[Let's see what happens Dec. 6]



[New York Times]
November 29, 2003
Trade Sanctions Against U.S. to Be Delayed
By ELIZABETH BECKER

WASHINGTON, Nov. 28 - The World Trade Organization has agreed to a 10-day
delay before Europe can impose $2.2 billion in sanctions against the
United States in response to steel tariffs imposed by President Bush last
year, an administration official said on Friday.

The decision was reached in Geneva on Thursday after the European Union
and other nations that had complained about the tariffs joined with the
Bush administration in seeking a delay, the official said. The earliest
date that Europe can impose sanctions will now be Dec. 15.

This gives Mr. Bush breathing room to make a decision about lifting the
tariffs that will be important both economically and politically.

Two weeks ago, the W.T.O. rejected an appeal of the decision made last
July in a case brought by Brazil, China, the European Union, Japan, Korea,
New Zealand, Norway and Switzerland.

Pascal Lamy, Europe's top trade official, has warned the Bush
administration and Congress that if the steel tariffs are not lifted,
Europe will proceed with more than $2 billion in sanctions on imports of
steel, clothing, citrus fruits and other agriculture products from the
United States.

Adding to the pressure, Japan said on Wednesday that it, too, would place
tariffs on American imports if the Bush administration maintains the steel
tariffs.

The loss of jobs, especially manufacturing jobs, is proving to be a
powerful issue in the coming elections. The 20-month- old steel tariffs,
which the government calls safeguards, have been credited with helping the
American steel industry consolidate and save jobs in industrial states.

But the tariffs, which have raised the price of imported steel as much as
30 percent, have also been blamed for the loss of jobs by American
manufacturing companies that use steel. The manufacturing companies say
the tariffs have raised their costs, cut their profits and forced them to
delay expansion and lay off employees.

With the election nearing, President Bush must choose between continuing
to help the steel industry and the unions that support the tariffs or
respecting international trade laws that would help him advance regional
and global trade agreements.

For his part, Mr. Bush said after losing the appeal that because he had
imposed the tariffs to help the steel industry get back on its feet, he
would make his decision after "reviewing the extent to which the industry
has been restructured."

Several leading steel companies have suggested a compromise to Mr. Bush
that would reduce the tariffs and their duration in hopes of appeasing the
Europeans.

Terrence D. Straub of the United States Steel Corporation, said it was
"hard to tell if this delay means anything."

"The president wanted more time and they agreed to that, which they should
have," he said, referring to W.T.O. officials.

Among the states that will be affected by the president's decision is
Pennsylvania. Mr. Bush will attend a fund-raising event in Pittsburgh on
Tuesday.