EU Requests WTO Authorization to Apply Retaliatory Sanctions Against U.S. in Byrd Amendment Dispute

(The Byrd Amendment requires that the revenues from antidumping (AD) and countervailing (CV) duties assessed on or after October 1, 2000 be distributed on an annual basis to the affected domestic producers (i.e. currently operating producers (including worker representatives) that were either petitioners for the AD/CV duty order in question or interested parties in support of the petition) for specified qualifying expenditures (e.g. manufacturing facilities, research and development, personnel training). See ITT's Online Archives or 10/19/00 news, 00101837, for BP summar.)

EU Proposes to Link Sanctions to Level of Disbursements Made Under Byrd Amendment

Regarding its request for the approval of retaliatory measures, the EU proposes that the level of additional import duty imposed on products originating in the U.S. should be linked to the disbursements made to U.S. producers under the Byrd Amendment during the previous year. This level would therefore vary every year according to the level of payments made in the latest annual Byrd distribution.

The EU states that the amount of the sanctions and the list of specific products targeted by the sanctions (which will not be affected by the yearly adjustment of the additional duty rate) will be defined at a later stage.

(For fiscal year (FY) 2002, U.S. Customs and Border Protection (CBP) reports that the amount distributed under the Byrd Amendment was $329,871,463.94. However, it is not clear how much of this sum the EU would use to compute its sanctions.)

EU's Sanctions Request to be Considered at DSB's Jan 26th Meeting

In its press release, the EU states that its request for authority to impose sanctions is on the agenda for the WTO Dispute Settlement Body's (DSB's) January 26, 2004 meeting.

The Office of the U.S. Trade Representative (USTR) states that the U.S. is expected to object to this proposed retaliation, which will send the matter to arbitration.

U.S. Administration Continues to Work With Congress on Byrd Amendment

According to a WTO status report, the U.S. administration proposed repeal of the Byrd Amendment in its budget proposal for fiscal year (FY) 2004. In addition, in June 2003, legislation to bring the Byrd Amendment into conformity with the U.S.' WTO obligations was introduced in the U.S. Senate (S. 1299).

The WTO status report states that the U.S. administration is continuing to work with Congress to enact legislation, and will continue to confer with the complaining parties in these disputes, in order to reach a mutually satisfactory resolution of this matter.

Seven Other Countries to Request Authorization to Apply Sanctions & Three Other Countries Allow U.S. Additional Time

The EU's press release states that Brazil, Canada, Chile, India, Japan, Korea, and Mexico are also requesting WTO authorization to apply retaliatory sanctions against the U.S. with regard to the Byrd Amendment. In addition, Australia, Indonesia, and Thailand have each reached an agreement with the U.S. allowing it until December 27, 2004 to implement the recommendations and rulings of the DSB.

EU press release (dated 01/15/04) available at http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/04/490RAPID&lg=EN&display=

USTR general counsel statement (dated 01/15/04) available at http://usinfo.state.gov/topical/econ/wto/04011501.htm

WTO status report (dated 01/13/04) and other documents related to Byrd Amendment dispute available at http://www.wto.org/english/tratop_e/dispu_e/distabase_wto_members4_e.htm (select "United States", then select "Antidumping", finally select "Continued Dumping and Subsidy Offset Act"

CBP's FY 2003 Byrd Amendment Preliminary Dollars to Disburse & Final FY 2002 and 2001 Byrd Amendment Disbursements available at http://www.cbp.gov/xp/cgov/import/add_cvd/