EU plans for steel sanctions

EU plans for steel sanctions

As reported by Reuters, EU foreign ministers are meeting in Luxemburg on Monday to discuss the sanctions in case the US fails to make satisfactory compensation offers for its tariffs on European steel. In case the parties cannot reach an agreement EU is preparing to bring duties to various US goods including steel which will amont to US$ 300 mio. As per WTO regulations EU has time until June 18 to adopt the list of US goods liable for countervailing duties, but it wants to leave a short time for negotiations after that date before the sanctions go into force. EU authorities point out to the fact that they will only learn about US offer on July 3 and therefore they are intending to take precautions in this respect. AB authorities state that in order the US offer to be satisfactory it should involve both exemptions for some EU steel products from the tariffs of up to 30 percent imposed by President Bush in March, and compensation in the form of lower US duties on other goods while they emphasize that their intention is to reach an agreement with the US on compensations and product exclusions from the US safeguard measures.