WTO rules on illegality of US countervailing duties
World Trade Organization (WTO) has ruled that the US acted illegally by imposing the duties against eight former state-owned steelmakers of the European Union (EU). These companies are Usinor of France, Corus (formerly British Steel) of the UK, Accai Speciali Terni (AST), Cogne Accaiai Speciali (Cogne) and ILVA of Italy, SSAB Sventskt Stal (SSAB) of Sweeden, Dillinger Huttenwerke Saarstahl (Dillinger) of Germany and Arceralia of Spain. The dispute arises from the argument of whether these privatized companies benefited from the previous financial contributions granted to the state-owned producers. US Department of Commerce (DOC) imposed duties on steel products made by these former state-owned companies to compensate the previously granted government subsidies. Yet, with the ruling by the WTO, the US is requested to bring its measures in line with its obligations under the international subsidies and countervailing measures of its WTO agreements. Added up to the existing steel tariffs problem, this situations is commented to increase the tensions between the US and the EU.