Accusations fly against U.S. from IMF on S201
Accusations are still reigning down on the Bush administration that its actions regarding the Section 201 (S201) ruling are illegal. The lastest accusation comes from IMF Deputy Managing Director, Anne Krueger who claims the U.S. clearly violated World Trade Organization (WTO) rules. Krueger claims U.S. action is not completely in line with international trading rules and that the tariffs surpass what normal safeguard provisions would allow for in anti-dumping and countervailing duty measures against a surge of imports. Krueger's accusations are the latest to follow those of Japan, China and Korea who also claim the U.S. is violating WTO rules. All three nations are seeking compensation for the damage they say U.S. tariffs have caused their steel industries. Korea is the latest to urge the U.S. Department of Commerce to consider its compensation request. Korea's Minister of Commerce, Industry and Energy is in the U.S. this week, holding broad talks on trade while trying to make Korea's case for compensation. Meanwhile, Japan already indicated that it is ready to make retaliatory moves by May 17, since no agreement on U.S. compensation has been forthcoming. Japan's Trade and Economy Minister Takeo Hiranuma has repeatedly called for the U.S. to either grant broad exemptions on its steel products or compensate it for damage done to its domestic steel industry. China, who initially claimed it would receive an across the board exemption, made its plea in April for compensation. The latest development is that five major Chinese steel producers hired two U.S. law firms to assist them in replying to a U.S. AD action filed in December 2001, stating that hot-rolled steel from 13 countries (including China) has harmed U.S. industry. Many in the industry are speculating that China will probably receive exemptions on specific, specialized steel products that would not otherwise be available from U.S. steel companies or that would not be available in sufficient quantities in the U.S. The EC has indicated that cases against the U.S. are from a number of other nations are soaring. Yet, regardless of broad accusations directed toward the U.S. about violation of WTO rules, the next few weeks will prove crucial as WTO officials prepare for their May 22 meeting, where the issue will be discussed.