EU delays implementation of retaliatory tariffs

EU delays implementation of retaliatory tariffs

The EU decided to postpone imposing any retaliatory tariffs against the US safeguard measures until September 30, 2002. The European foreign affairs ministers formally agreed on the postponement. The USTR officials believe that EU's retaliation will not contribute to either the EU or the US or the world steel trading. On the other hand European Commission authorities emphasize that the decision only aims a postponement and not a cancellation of the proposed retaliation. Expectations of more product exemptions by the US Trade Representative continue. EU Trade Commissioner Pascal Lamy stated that the US is aware of EU's expectations of substantial exclusions in order not to implement the retaliatory tariffs. It seems that EU prefers to wait for the US conclusion of the exclusion procedures keeping them under pressure of the possible retaliations rather than going ahead with implementing the tariffs prior to expiration of the given deadline by the US authorities