The European Union announced on Thursday it will apply sanctions on U.S. products as a punishment to Washington for failing to abrogate an antidumping law ruled illegal by the World Trade Organization.
The EU head office said its initiative would be supported by seven other nations, including Japan, South Korea and Brazil, which had all asked the WTO for authorizing retaliation.
The EU’s move would slap additional duties of up to 15% as of May 1 on such U.S. products as paper, textiles, machinery and farm produce, according to the Associated press.
The EU head office said it was urged to act "in light of the continuing failure of the United States to bring its legislation in conformity with its international obligations."
The 25-nation EU has long appealed to Washington to abolish the three-year-old legislation and the Bush administration has been cooperating with Congress to bring it into correspondence with its obligations. Yet the European Commission said that further action should be taken.
The Geneva-based WTO first stated that the U.S. legislation was illegal in 2002 and gave the U.S. time until the end of 2003 to fulfill its recommendations. When it failed to do it, the eight complainants were given the right late last year to impose sanctions.
"The EU understands that Canada will be announcing retaliatory measures against certain products from the United States and expects that other co-complainants will soon join it in applying retaliation," the EU head office said in an interview.
The law, known as the Byrd amendment, allows U.S. companies to earn profit from antidumping duties imposed on foreign rivals.
The European Commission announced there were no meetings with U.S. officials planned prior to the May 1 deadline.