WTO rules against the legality of S201 sanctions on steel imports

WTO rules against the legality of S201 sanctions on steel imports

As per a very recent announcement, the World Trade Organization (WTO) stated in its final ruling that the S201 sanctions implemented by the US against steel imports are illegal, in line with its earlier finding. The earlier finding stated that duties of upto 30% were against the WTO international trading rules, however same were defended by President Bush, described as necessary for the protection of domestic steel industry. Thus, the appeal by the US against WTO's earlier finding is rejected, and this final ruling will be binding. The European Union was preparing to retaliate the US tariffs with duties worth $2.2 billion in sanction unless the US tariffs are immediately cancelled. It was stated last week by the EU Trade Commissioner Pascal Lamy that the EU retaliation would be for certain if the WTO ruled against the US. The Bush administration has been reviewing the question on whether to cancel or keep the safeguard measures in place, which are due to expire by March 2005, according to the originally intended time frame. The EU will hit back the US sanctions if they are still in place five days after the WTO report is formally adopted. Such transaction is expected to be complete by end November.