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GOVERNMENT
The U.S. has until dec. 27 to change a law that handed over millions of dollars to chemical companies in 2002, a World Trade Organization (WTO) arbiter has ruled. If the U.S. does not alter the law by that deadline, WTO likely will allow a number of U.S. trading partners, including Canada, Japan, and the European Union, to impose sanctions on U.S. goods. The arbiter's June 13 ruling comes in a case against the Continued Dumping & Subsidy Offset Act, a law better known as the Byrd amendment. Its author is Sen. Robert C. Byrd (D-W.Va.), who slipped it into fiscal 2001 government funding legislation. The Byrd amendment addresses the duties that the U.S. imposes on imports that are "dumped"--sold at below-market price--or that receive unfair subsidies from their national governments. Collecting such duties is legal under WTO rules. These funds formerly went to the U.S. Treasury. But the Byrd amendment directs this money to companies that file successful complaints with the U.S. government alleging dumping by or unfair subsidies for their foreign competitors and seeking import duties. The EU and 10 countries challenged the Byrd amendment at WTO, saying it unfairly creates an incentive for U.S. companies to file complaints. WTO dispute resolution panels agreed and twice ruled against the U.S. In addition to setting the Dec. 27 deadline, the arbiter's ruling said the U.S. can either repeal or modify the Byrd amendment. WTO dispute resolution panels had suggested that overturning the law might be the only way for the U.S. to comply with international trade rules. According to U.S. Customs Service figures, 10 U.S. chemical producers received nearly $14 million in Byrd amendment compensation in 2002 (C&EN, March 17, page 28). |
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Chemical & Engineering News |
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