World Trade Organization
Author | International Law Group |
A WTO Dispute Settlement Panel ruled for the European Union (EU) in December 1999 in its dispute with the U.S. over countervailing duties imposed on steel originating in the United Kingdom (UK). Affected were certain hot-rolled lead and bismuth carbon steel products (leaded bars). See 2000 Int'l Law Update 30.
In 1993, the U.S. Department of Commerce had established a subsidy rate of 12.69 % on steel imports from United Engineering Steels Ltd. (UES). The state-owned British Steel Corporation (BSC) had set up UES in 1986 but British Steel plc (BSplc) had taken over BSC's assets in 1988. The UK Government had then privatized BSplc in 1988, selling its shares at fair market value. UES became an affiliate of BSplc in 1995 and changed its name to British Steel Engineering Steels (BSES). BSplc had received government subsidies before privatization, but received no subsidies afterwards. The U.S. imposed countervailing duties in March 1993 for the subsidies that BSC had received in the years 1977/78 - 1985/86 before privatization. The U.S. rationale was that a portion of the prior...
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