Economic Sanctions

• Author: International Law Group

In response to the safeguard measures in the form of tariff increases or tariff quotas that the U.S. has imposed on imports of EU steel products from March 20, 2002, the EU has responded with Regulation 1031/2002. It lays down "additional customs duties on imports of certain products originating in the United States of America." These duties range from 8% to 100%. According to the Regulation, the EUR 626 million in duties collected will not exceed the amount of duties that the U.S. has imposed on EU exports. The Regulation notes that the U.S. safeguards affect European Union exports worth at least EUR 2,407 million per year. Furthermore, the Regulation states that the EU notified the WTO Council for Trade in Goods on May 14, 2002, and that the Council has not notified the EU that it disapproved Regulation 1031/2002.

The Annexes to the Regulation list the U.S. products on which the EU has imposed higher duties. Among the affected U.S. products are (additional duties in parentheses): rice (100%), t-shirts (100%), flat-rolled products of iron or non-alloy steel (100%), and building structures (100%). The additional duties listed in Annex II will apply from March 20, 2005 on, or from date on which the WTO issues a finding that the U.S...