WTO Approves Sanctions on US over AntiDumping Law

[xpanda]

World Trade Organization approves sanctions over U.S. antidumping law

Fri Nov 26,10:11 AM ET

GENEVA (AP) - The World Trade Organization (news - web sites) has approved stiff sanctions on U.S. exports - ranging from almonds to ski jackets - intended to punish Washington for failing to repeal the so-called Byrd amendment, a key trade diplomat said Friday.

"It's been approved," said Amina Mohamed, Kenyan ambassador to the WTO, who is chairwoman of the organization's dispute settlement body.

The European Union (news - web sites) and other plaintiffs, including Canada, sought formal WTO authorization to retaliate by imposing new duties against various U.S. products. Among the other potential targets are cod, textiles, glassware, mobile homes and apples.

The WTO dispute settlement body had been scheduled to give a green light Wednesday, but U.S. trade diplomats held last-minute talks with counterparts from the European Union and countries including Canada and India.

Although U.S. officials declined to comment, the move was believed to have followed wrangling after Washington requested fine-tuning of documents submitted to the WTO.

Named for its sponsor, West Virginia Senator Robert Byrd, the 2000 tariff law was ruled illegal two years ago by the 148-country WTO - which referees global commerce - following a complaint spearheaded by the EU.

The contested law allows American companies to receive proceeds from duties levied on foreign rivals for alleged "dumping" - selling goods at below-market prices, making it impossible for American producers to compete.

The WTO backed claims that the amendment breaks trade laws by punishing exporters to the United States twice because they are first fined, and then those fines are passed on to their competitors.

In August, a WTO arbitrator approved penalties of up to 72 per cent of the money collected from foreign exporters and handed to American companies and said the winners should submit lists of potential targets.

Under WTO rules, however, formal authorization must come from the dispute settlement body.

The EU was joined in its complaint by seven other countries: Canada, Brazil, Mexico, South Korea (news - web sites), Japan, India and Chile.

 

[Shotgun]

World Trade Organization approves sanctions over U.S. antidumping law


The contested law allows American companies to receive proceeds from duties levied on foreign rivals for alleged "dumping" - selling goods at below-market prices, making it impossible for American producers to compete.

The WTO backed claims that the amendment breaks trade laws by punishing exporters to the United States twice because they are first fined, and then those fines are passed on to their competitors.

So the dumping of foreign products on the US market is legal, but the laws punishing the dumpers isn't?

 

[eek.]

Thats the free market dude.

Or are you a communist when capitalism doesn't suit you?

 

[lander]

Is this going to cause an major problems? or is our really HUGE trade deficit just going to become really really HUGE now?

 

[docmercer--banned]

Cheney most likely will give the directive to Nuke the WTO by the end of the month ...

 

[bblight]

Decisions by the WTO go both ways. Overall, the WTO is generally a conduit to iron out these issues; and all sides dump. It's no big deal.

The US could pull an end around, but that would lead to more tarrifs and bans - like big business does, you can tie an issue up in the courts for years before it's resolved - and make a ton of $ befoire compliance is mandated.

Doc - I bet you blame your chronic constipation on Bush and Cheney!

 

[Shotgun]

Thats the free market dude.

Or are you a communist when capitalism doesn't suit you?

I don't believe capitalism includes dumping products...a gas station can't lower its price to $1 a gallon to drive out its competitors and corner the market. It sounds like that is what was happening.

Lander, it is only about $150 million a year in sanctions...I read somewhere that American companies received over $500 million from the law the first two years it was enacted. It sounds more of a PR move from the WTO than anything else.

 

[lander]

Thx Shotgun. I thought they said 150 billion on the radio, but I must have misheard as I cannot find that figure anywhere on the net.

 

[Phaedrus]

posted by eek:

Thats the free market dude.
Or are you a communist when capitalism doesn't suit you?

You hit the nail on the head there eek. Nearly everyone is a closet socialist when it comes to wielding the nearly-limitless, consequence-free power of the state to further his own ends.

posted by Shotgun:

I don't believe capitalism includes dumping products...a gas station can't lower its price to $1 a gallon to drive out its competitors and corner the market.

Why can't he? Retailers and manufacturers do this all the time; it's called a "loss leader" strategy. Harley-Davidson saved itself from bankruptcy by producing a cheap but chic little bike (the XL, or "Sportster") on which it lost money, but which made money for the dealerships, thus motivating dealerships to stop abandoning the marquee in favour of its Japanese competitors.

Why can't a gas station sell gas at a loss in order to drive traffic to the store? There is little profit in gasoline retail anyway; the items on the shelves and counters are generally where the real margins are made.

"Dumping" is a fantasy crime. A widget producer in Poland can build, ship and market his wares cheaper to US customers than a widget producer in Cleveland, and he's accused of "dumping" because his prices are lower than the domestic producer's. The only real problems of "dumping" occur when the widget producers in Country X are able to go sub-market on prices due to subsidies from the government of Country X, and virtually every nation on earth is guilty of that despicable practice.


Phaedrus

 

[eek.]

The WTO must have a heck of a lot more clout than the UN in the US administration.

Ignoring or taking the mick out of the UN is done on a pretty regular basis.

But even the rabid warmongering Bush administration goes on bended knee before the WTO altar.

http://news.bbc.co.uk/1/hi/world/europe/country_profiles/2429503.stm

 

[eek.]

In a way, it makes internet gambling more crucial than we would ever have imagined.

US laws prohibiting cross-border gambling break trade rules, the World Trade Organisation says.
But the US said it will appeal and - as a last resort - could activate its right to change the deal under which it joined the WTO in the first place.
http://news.bbc.co.uk/1/hi/business/4001793.stm

If Saudi does not allow Coca-cola or Johnny Walker black label into its country, is it breaking WTO rules?

If the US lets its citizens gamble countrywide on something, like the lottery, or the ponies, I can't see it being allowed to exclude other WTO members from offering a service.

I can see the US backing off on gambling, and concentrating on restricting payment systems.

 

[WildBill]

The payment system restriction would be a lot more troublesome as that is a direct restraint of trade. The rationale behind the dumping rules are that countries can use local law to in effect give themselves the extra edge. National dumping isn't an issue because national laws are supposed to be equalized internally. Still the US system is a joke, there is no real dumping just accusations of such. By the time the accuser admits there wasn't dumping it often follows actions taken by the US on their behalf.