EU, Canada to retaliate against US Byrd Amendment
The European Union (EU) and Canada will impose 15% duties on a range of US goods, including agricultural, machinery and textile products, starting from May 1, 2005. The duties were proposed as a way of retaliating against the US antidumping laws known as the “Byrd Amendment”, which the EU and Canada argue runs afoul of the US' international trade obligations. Under the Byrd Amendment, the US government distributed more than $1 billion to companies that sought government protection from low-priced imports. The EU and Canada claim that such aid provides US companies an unfair trade advantage. The World Trade Organization (WTO), in November 2004, approved the imposition of $150 million sanctions on US goods. The EU said that the level of retaliation will amount to approximately $28 million per annum. Canada expects to collect about $14 million per annum through the duties.