WTO Authorizes Up to More Than $150 Million in Retaliation Against U.S. Byrd Amendment
On August 31, 2004, the World Trade Organization (WTO) authorized the European Union (EU), Canada, Mexico, Brazil, Chile, India, Japan, and Korea (complainants) to retaliate against the U.S. for its failure to bring the Continued Dumping and Subsidy Offset Act of 2000 (Byrd Amendment) into conformity with WTO rules by December 27, 2003.
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WTO Arbitrators Authorize More Than $150 Million in Sanctions Against U.S.
According to a joint press statement by the eight complainants, WTO arbitrators have given the green light for the complainants to retaliate up to more than $150 million against the U.S. in this dispute. The joint press statement notes that the award of the WTO arbitrators cannot be appealed.
The joint press statement further states that the WTO arbitrators ruled that the complainants may exercise their retaliatory rights, at any time deemed appropriate, in accordance with the award and the requirements of the WTO rules on the settlement of trade disputes.
According to the joint press statement, the level of retaliation authorized by the WTO arbitrators is based on the trade effects of the most recent payments distributed from antidumping or countervailing duties collected on the products originating from each complainant multiplied by a factor of 0.72.
Level of Sanctions May Vary Each Year
The joint press statement notes that the level of sanctions may vary every year so as to reflect the wide variations in the amount of payments made under the Byrd Amendment from one year to the other.
(See ITT's Online Archives or 03/24/04 news, 04032430, for BP summary on the fiscal year (FY) 2003 annual disbursements on Byrd Amendment claims. See ITT's Online Archives or 06/15/04 news, 04061535, for BP summary on the preliminary dollar amounts for distribution of FY 2004 disbursements on Byrd Amendment claims.)
U.S. Says it Will Comply with its WTO Obligations
According to a statement from Office of the U.S. Trade Representative (USTR) Spokesman Christopher Padilla, the "U.S. will comply with its WTO obligations, and the Administration will work closely with Congress to do so in a way that supports American jobs and American workers."
(The Byrd Amendment requires that the revenues from antidumping (AD) and countervailing (CV) duties assessed on or after October 1, 2000 be distributed on an annual basis to the affected domestic producers (i.e. currently operating producers (including worker representatives) that were either petitioners for the AD/CV duty order in question or interested parties in support of the petition) for specified qualifying expenditures (e.g. manufacturing facilities, research and development, personnel training). See ITT's Online Archives or 10/19/00 news, 00101837, for BP summary.
In January 2003, the WTO ruled against the U.S.' Byrd Amendment and gave the U.S. until December 27, 2003 to comply with its ruling. When the U.S. failed to meet this deadline, the eight complainants requested authorization from the WTO in January 2004 to impose additional import duties on U.S. products or to suspend other obligations to the U.S. In addition, three other complainants (Australia, Indonesia, and Thailand) reached an agreement with the U.S. allowing it until December 27, 2004 to implement the WTO's recommendations and rulings on the Byrd Amendment. See ITT's Online Archives or 01/21/04 news, 04012110, for BP summary.)
Complainants' joint press statement (dated 08/31/04) available at
USTR spokesman statement (dated 08/31/04) available at