Brussels tells WTO it will raise sanctions on U.S. products

GENEVA: The European Union informed the World Trade Organization on Tuesday that it will raise retaliatory sanctions against U.S. products because Washington continues to distribute anti-dumping funds to its companies in violation of international commerce rules.

EU trade negotiator Raimund Raith said a 15 percent surcharge will be extended to 32 new categories of American exports on May 1 to penalize the United States for failing to halt payments to industries under a law known as the Byrd amendment.

The law, which allows American companies to receive proceeds from antidumping duties levied on foreign rivals, was ruled illegal by the WTO in 2002 and repealed by the U.S. two years ago. But in a compromise with companies, the Senate allowed for the distribution of funds to continue until October this year.

The EU complains that the payments could actually continue for many more years.

The 27-nation bloc "would like to ask again the United States if and what steps it intends to take to stop the transfer of anti-dumping and countervailing duties to its industry," Raith told the WTO's dispute settlement body.

He said the sanctions would be directed against U.S. paper products, plastics, textiles, pens, footwear and mobile homes. The measures will bring the total level of retaliation to US$81.19 million (