The World Trade Organization's (WTO) Dispute Settlement Body (DSB) established a panel to examine the legality of US tariff increases on steel imports under "safeguards" provisions. The WTO moved to establish the panel after the European Union made its second request for an examination into the compatibility of US actions with WTO requirements. In making its request, the EU cited the lack of increased imports, the absence of injury, the flawed causal link between imports and injury, and the disproportionate remedy as proof that the United States violated the WTO rules. The US has strongly denied that its actions violated the Safeguards Agreement or other WTO rules. Japan, Korea, Taiwan, Switzerland, Brazil, Norway, Canada and China have requested to be third parties on the dispute panel. Closer to home, Canada is continuing its own steel trade investigation with hearings to commence soon. The final report recommending action on imports probably will be made by midsummer. The initial phase of the probe by the Canadian International Trade Tribunal (CITT) has already been completed. After the hearings, CITT will write its final report recommending what action the Canadian government should take regarding steel imports.
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