US appeals against WTO ruling on S201 safeguard measures

US appeals against WTO ruling on S201 safeguard measures

It is recently reported that yesterday US appealed against World Trade Organization's (WTO) ruling against S201 safeguard measures implemented by the Bush administration back in March 2002. S201 sanctions slapped steel imports with duties up to 30% for the purpose to protect US steel industry from the surge of dumped imports. Following the completion of the review, initiated due to complaints filed by the EU, China, Japan, S.Korea, Norway, Switzerland, New Zealand and Brazil, the WTO announced its final decision on July, 11 ruling that US violated global trading rules by implementing safeguard measures and exluding four countries namely Canada, Mexico, Israel and Jordan from these measures. After the announcement, EU officials stated that in case US does not call off the safeguard measures, they were going to put into force retaliatory tariffs worth around €1.9 billion (approx. $2.2 billion) on certain US imports. However, because US appealed to WTO ruling as expected, EU won't be able to effect its retaliatory action until dispute settlement process is completed which is believed to end next summer. Besides, US now has the opportunity to leave these measures in force for at least nine months or more.