The Battalion. (College Station, Tex.) 1893-current, November 11, 2003, Image 10

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Tuesday, November 11, 2003
WOffli
THE BATTALK
U.S. faces $2.2 billion in
sanctions over steel dutie
By Naomi Koppel
THE ASSOCIATED PRESS
GENEVA — The United
States faces up to $2.2 billion in
European Union trade sanctions
after a World Trade
Organization appeals panel
ruled Monday that U.S. tariffs
on imported steel are illegal.
In a 170-page report, a three-
member WTO panel rejected the
bulk of the U.S. appeal of an
earlier ruling that said duties of
up to 30 percent introduced in
March 2002 by the Bush admin
istration breached trade rules.
The appeals body is WTO’s
highest tribunal, and the deci
sion is final.
In a joint statement, the
countries that brought the case
said the United States had “no
other choice” but to remove the
import duties without delay. The
EU said it will impose retaliato
ry sanctions of up to $2.2 billion
by introducing 100 percent
duties on some U.S. imports,
effectively pricing those goods
out of the EU market.
The United States insisted it
was right to impose the tariffs
for three years.
“We disagree with the over
all WTO report and we are
going to study it and look at its
implications and go from there,”
said White House spokesman
Scott McClellan, aboard Air
Force One with President Bush.
McClellan would not offer a
timetable for a White House
decision on whether to rescind
the tariffs or accept the
sanctions. For several weeks.
Bush has been studying a
separate report from his
international trade commission
on the subject.
“The steel safeguards the
president imposed were to pro
vide our domestic steel industry
an opportunity to adjust to
import competition ... to give
our domestic industry an
opportunity to restructure and
consolidate and become
stronger and more competi
tive,” McClellan said.
“We believe (the safeguards)
are fully consistent with WTO
rules and we will carefully
review those decisions.”
U.S. Rep. Bob Ney, a
Republican from the steel state
of Ohio, said it was “absolutely
unconscionable for the WTO to
target needed American tariffs
on foreign steel while nations
such as China are manipulating
its currency, paying its workers
pennies per hour and Hooding
the marketplace with their
cheap goods.”
When his administration
introduced the duties. Bush
claimed they were justified to
protect domestic steel producers
during a period of restructuring.
But the complainants said
Washington failed to prove
that its industry was harmed by
a sudden flood of cheap
imports —r a condition for
imposing such duties under
WTO rules — and that it
unfairly excluded imports from
countries the United States had
free trade agreements with at
the time — Canada. Mexico,
Israel and Jordan.
The issue is a political foot
ball in the United States, where
the Bush administration is fac
ing heavy pressure from steel-
producing states to keep the tar
iffs in place. The administration
has been reviewing whether to
maintain the duties for the full
three-year coverage period,
which would run past next
year’s presidential elections.
But there also is domestic
pressure to remove the tariffs
from steel users such as
automakers. They claim the
move has increased the price of
their materials, causing job
losses in the industry and mak
ing vehicles more expensive
for consumers.
The EU plans to target its
tariffs at goods produced in
important swing states in the
2004 presidential election. It
says it will start retaliating if the
U.S. steel duties are still in
place five days after the report
lias been formally adopted by
the WTO, which must happen
within 30 days.
EU trade commissioner
Pascal Lamy told Dow Jones
Newswires he believed remov
ing the duties would be much
more effective at pushing the
U.S. steel industry to restruc
ture, while leaving them in place
U.S. tariffs illegal
Tariffs which have caused US
steel consumers to useless
foreign steel this year while
depositing $650 million into the
Federal Treasury were deeme:
illegal by the World Trade
Organization Monday.
Value of U.S. Steel imports
ht
03 '02 03 03
Impact of the tariffs since
imposed in march 2002
$700 million
600
500
400
300
200
100
■ $650
n " ll,0li -
Cost to
steel
consumers
Tanff
revenue
collects:!
SOURCES: U.S Commerce Department
International Trade Commission
artificially protects the indusr
“The rationale for these sie
guards — if there ever was a®
— has disappeared,’'he said.
Complaints also were filet
by Japan, Soutli Korea, Nora;
Switzerland, China. Net
Zealand and Brazil. All of te
countries could now seek
impose sanctions on l)A
imports if the dulies are»
removed, and Tokyo already fas
warned it may retaliate
“Should the U.S,
improvement, we will sinpl)
take the necessary steps,” sail
Japan's vice minister of ecoi-
my, trade and industry. Seiji
Murata, according to Kyod
news agency.
WTO director-genes
Supachai Panitchpakdisaid®'
lier Monday he hopes the c»
tries will he able lo solve it
problem without resorting to|
sanctions.
“I’m sure there will be some
way out,” Supachai said, speak
ing in Beijing. “I expect die
conciliatory approach that w
have seen in the past, and leer
tainly recommend it
approach.” '
in
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ments, t
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Durst mi
trie milli
erly neig
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rendered
deliberat
killing hi
posing o
When
vote was
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undecide
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because
De
said
NEWS IN BRIEF
Government civil
fraud recoveries
reach $2.1 billion
WASHINGTON — The gov
ernment recovered a record
$2.1 billion in fiscal 2003 from
lawsuits and investigations
involving allegations of fraud
in programs ranging from
Medicare to offshore gas
leases, the Justice Department
announced Monday.
The total for the fiscal year
that ended Sept. 30 brings to
$12 billion the amount recov
ered since 1986, when
Congress toughened the civil
False Claims Act by increasing
incentives for people who sus
pect wrongdoing to file whistle
blower lawsuits.
Whistle-blowers were paid
some $319 million in 2003 for
disclosing the fraud by filing a
lawsuit against the company.
The taw allows whistle-blowers
to receive up to 25 percent of
any judgment should the gov
ernment intervene and up to
30 percent should they pursue
their cases alone.
Health care fraud accounteil
for most of the money reco ! .
ered in 2003, mainly fromtl;|
Medicare and Medicaid pftj
grams. One big case inv
$641 million from the HCAInc|
health care- chain for the |
ment of kickbacks to pi
dans and overbilling Medic
HCA has paid the gov
ment $1.7 billion in connectirj
with fraud settlements t
criminal guilty plea c
from 2000.
evid
to
reasc
was c
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PRESENTS
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WHAT WAS I
THINK! N?
Ml >**St |
E
S
NOV
121
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