US product exclusions deadline extended to September 1

US product exclusions deadline extended to September 1

It is reported that the US told the EU yesterday that the completion of the product exclusions is predicted by September 1, 2002. Total number of requests made is more than 2.000 yet only 181 exemptions are granted so far. However there is no request that has been rejected by the US therefore additional time is required in order to complete the process. Robert B. Zoellick, The US Trade Representative stated that the exclusion process is complicated as they aim to balance the needs of steel consumers and producers while continuing to preserve the integrity of the US safeguard measures. It is reported that most of the exclusions are expected to work retroactive to March 20, 2002 and all duties collected since then will be refunded. EU comments that this extension is of no surprise and they will continue with its timetable yet consider further developements prior to making any decisions. The US steelmakers are worried that the more products are exempted the less effective the safeguard measures get while the steel consumers believe that the Bush administration now recognizes the negative effects of the safeguard measures adding costs to prodution of cars and appliances.