Topics in Brief

• Author: International Law Group

WTO panel finds U S. steel tariffs illegal

In an attempt to shelter the struggling American steel industry, the Bush administration, in March 2002, had levied tariffs of nearly 30% on most types of steel imported from Europe, Asia and South America. The administration later reduced the tariffs, exempting a further 178 steel products, presumably to defuse the dispute with Europe. On July 11, 2003, however, the World Trade Organization (WTO) handed down a formal finding that these tariffs were unlawful. The U.S. trade representative's office announced that it would appeal the ruling to a seven-member WTO appellate body. In the meantime, the U.S. will keep the steel safeguards in place. If the ruling is upheld on appeal, the European Union plans to strike back immediately with as much as $2.2 billion in countermeasures against U. S. exports. Although the U.S. had exempted many European steel makers from its import tariffs, an EC Commission spokeswoman said that Europe will still press the WTO for the maximum available sanctions."The exemptions were granted to help U.S. steel users, not to give European steel makers a present."

Citation: The New York Times (Brussels), Saturday, July 12, 2003 (byline of Paul Meller) The Washington Post, March 27, 2003, page E1.

Aided by AGOA, BMW (South Africa) greatly increases its auto exports to U S

The African Growth and Opportunity Act (AGOA) of 2001 has stimulated BMW of South Africa to export much of its automobile and parts output to the U.S. The Act grants the products of qualified African countries nonreciprocal, duty-free access to the U.S. market. Each nation has to have a market-based economy, political pluralism and devotion to the Rule of Law. AGOA abolished the 2.5% import tariff on most cars made in South Africa. In the first year under the Act, South African auto industry exports to the U.S. amounted to $359 million. During 2002, these exports grew to $572.9 million. Over the last five years, BMW South Africa alone has more than quadrupled its business, with exports to the United States under AGOA accounting for one-half of...