E.U., Canada Warn of Tariffs Over U.S. Anti-Dumping Law

Friday, April 1, 2005; Page A21

The European Union and Canada said yesterday that they will begin imposing punitive duties May 1 on several American exports because the United States has failed to repeal a controversial anti-dumping law that was ruled illegal by the World Trade Organization.

The duties, which would be set at 15 percent, would affect shipments of U.S.-made paper, clothing and machinery to Europe and shipments of swine, cigarettes and oysters to Canada.

The threat steps up pressure on Washington to scrap or at least modify the law, which is known as the Byrd amendment for its chief author, Sen. Robert C. Byrd (D-W.Va.). That law, passed by Congress four years ago, provides that when foreign manufacturers are found to be dumping goods in the U.S. market -- that is, selling at unfairly low prices -- any anti-dumping duties that are imposed can be handed over to the U.S. companies that brought the dumping case, rather than to the Treasury.

It has benefited U.S. firms in industries including steel and pasta, with one of the largest beneficiaries being Timken Co., an Ohio maker of bearings, which collected about $40 million last year.

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http://www.washingtonpost.com/ac2/wp-dyn/A16917-2005Mar31?language=printer