US, EU begin consultations on steel

The United States said today it had begun consultations with the European Union on its plans to retaliate against US steel import…

The United States said today it had begun consultations with the European Union on its plans to retaliate against US steel import tariffs, and renewed its criticism of the European measures.

"The United States began consultations today with the (European Commission) to discuss our strong concerns over their safeguard action on steel," associate US trade representative Ms Josette Shiner said in a statement.

The statement suggested Washington and Brussels were seeking to avert a tit-for-tat trade row over the steel issue.

Washington has been sharply critical of the EU retaliation proposal - 100 per cent import tariffs on some US goods, including grapefruit and rice - which were made in response to an equally contested action by Washington to apply tariffs of up to 30 per cent to protect the ailing US steel industry.

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Ms Shiner reiterated Washington's position that the European Union should refrain from action until the case comes before the World Trade Organization.

"The United States believes the (commission) failed to conduct a thorough and fair investigation before taking its hurried safeguard action," Ms Shiner said.

"The United States conducted an extensive investigation over nine months before imposing temporary safeguards. In contrast, the (European Commission) announced its provisional safeguard measures only seven days after the effective date of the US steel safeguard - claiming 'critical circumstances' forced them to act."

Ms Shiner said the US measure is expected to have little impact on prices overall and has not been shown to injure the EU steel industry as claimed.

Earlier this week, Trade Representative Mr Robert Zoellick urged the European Union to abandon its retaliation plans, saying such action would be against world trade rules. The European Union says its actions are allowed under WTO rules.

AFP