The
EU has requested that the WTO allow it to empose sanctions on the US in retaliation for the Byrd Amendment. The US plans to
fight the EU's request.
In another shocking (but predictable) display of chutzpah the US plans to object to other countries trying to screw them back for illegal trade practices. The EU along with eleven other nations, including Japan, Australia, Canada, Mexico, Brazil, Chile, India, Indonesia and South Korea have complained to the WTO about the 2000 Byrd Amendment, an anti-dumping law which uses fines levied against foreign corporations to subsidize American companies. The WTO has ruled the law illegal, and ordered the US to bring itself into compliance by 27 Dec 2003, which it has failed to do.
The EU is now asking for permission to enact retaliatory sanctions, which the US objects to, arguing that the law doesn't affect European exporters. Retaliatory duties are estimated to total at least $200 million annually.
The other countries party to the complain are also requesting permission to impose sanctions.
Soft Lumber and Steel are to industries noted to benefit under the Amendment.
And from Dept. of the Pot and the Kettle, Republican Sen. Grassley has criticized Sen. Byrd for including the amendment in a conference report without a full Senate debate.
(If someone with more detailed knowledge of US Trade legislation would like to post an estimate of how likely it is that the US backs down again, or how much effect EU sanctions might have I'd be grateful.)