
JUNE 2005 |
Two Senators Question Legality of Retaliation |
Sens. Robert Byrd (D-WV) and Mike DeWine (R-OH) questioned whether the retaliation Canada and the European Union have imposed on US imports exceeds what was authorized by a World Trade Organization (WTO) arbitrator in a decision that found the Byrd Amendment to be WTO-illegal. This is the first time that any Members of Congress or US officials have publicly suggested that these countries might be imposing unauthorized levels of retaliation in response to the US failure to repeal the law.
According to a letter sent from the Senators to USTR Portman, "It is not clear that in this instance the amount of retaliation being imposed by Canada and the EU is correct. In fact, there is a legitimate question as to whether the amount of retaliation being imposed is in excess of that established by WTO arbitrators."
Canada, the EU and other co-complainants in the WTO decision on the Amendment were granted the right by a WTO arbitrator in 2004 to suspend concessions or other obligations that cover a value of trade no higher than 72% of the annual disbursements under the Byrd law, under which duties in unfair trade cases are redistributed to the US companies that petitioned for the cases.
Under the US interpretation of this ruling, the formula would allow Canada to impose retaliation on US imports worth $11 million. However, Canada announced it would impose a 15% tariff on US exports worth more than double that amount.
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