UK - UK Steel have welcomed the preliminary ruling by a WTO disputes panel that the tariffs imposed by the USA last year on steel imports contravene WTO rules. The news will also be welcomed by those in this industry who export steel-based products to the US.

Ian Rodgers, deputy director commented: "This confirms what we said from the start - that there was no legal justification for the US government to impose these measures at a time when steel imports had been falling consistently for three years. The WTO rules are quite clear - such measures can only be taken in response to a current increase in imports."

Responding to the possibility that the US government might appeal the ruling, Rodgers said: "This was such a cut-and-dried case from the start, it would make most sense for the US government to end the tariffs immediately, rather than suffer the humiliation of a second defeat. In any case, it is debatable whether the US steel industry has had much benefit from the measures, as the main impact has been to allow NAFTA producers and developing countries to fill the gaps left by the exclusion of traditional suppliers such as the EU. At the same time, US consumers have had to pay more for specific types of steel that are only available in sufficient quantities from those traditional sources."

UK Steel, a division of the Engineering Employers’ Federation, represents 95% of UK steel production and many downstream processors. Formerly known as UK Steel Association it merged with the EEF in summer 2002.

(Ruth Rossington)


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