C&EN: TODAY'S HEADLINES - WTO URGES U.S. TO REPEAL TRADE LAW

CHERYL HOGUE

World Trade Organization arbiters last week told the U.S. it should repeal a law that gives fines collected from foreign competitors for unfair trade practices to U.S. companies. That law, WTO says in a final ruling similar to an interim one issued in July, is illegal under international trade rules.

Although the U.S. potentially could bring the law into conformity with WTO rules, “we find it difficult to conceive of any method which would be more appropriate and/or effective than the repeal” of the legislation, the arbiters wrote.

The 2001 law concerns duties the Customs Service collects on imports that the U.S. International Trade Commission and the Commerce Department determine are dumped on the U.S. market or are unfairly subsidized. U.S. companies affected by these unfair trade practices are eligible to receive the funds. Sen. Robert C. Byrd (D-W. Va.) wrote the law called the Byrd amendment.

According to the American Chemistry Council, the chemical industry is involved with antidumping trade cases worldwide. The trade association does not deal with antidumping issues in the U.S., but many of its member companies do, says Sushan Demirjian, manager of international trade for ACC.

Lodging the complaint against the U.S. law were Australia, Brazil, Canada, Chile, the European Union, India, Indonesia, Japan, Mexico, South Korea, and Thailand. EU Trade Commissioner Pascal Lamy says, “I strongly hope that in view of the clear condemnation of the legislation itself and the very broad interests affected, the U.S. will promptly repeal the Byrd amendment as recommended” by the WTO arbiters.
The Bush Administration has indicated it will appeal the WTO ruling.