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Bush faces tough decision on WTO ruling against steel tariffs
Washington, Nov 11: President George W Bush faces a tough political and economic decision after countries in Europe and Asia demanded the US to drop its duties on imported steel or face retaliatory measures, following the World Trade Organization`s ruling against U.S. protection for its ailing steel industry.
Washington, Nov 11: President George W Bush faces a tough political and economic decision after countries in Europe and Asia demanded the US to drop its duties on imported steel or face retaliatory measures, following the World Trade Organization's ruling against U.S. protection for its ailing steel industry.
Yesterday's WTO decision gives the European Union and
several other countries the right to impose retaliatory
tariffs on billions of dollars worth of American exports
unless Bush reverses his March 2002 decision to give American
steelmakers protection from imports at least till March 2005.
Steel producers warn that more towns will join the rust belt unless the tariffs ranging up to 30 per cent are continued.
If he refuses to ignore the ruling and continue protection, with less than a year for the next presidential election, he would anger voters in key steel-making states such as Pennsylvania, Ohio and west Virginia.
But if he maintains the tariffs, he would risk angering industries in other states that would be hurt by the retaliatory duties which could be imposed by the EU and other countries.
The EU's list of targeted products includes many that were clearly chosen for their political impact in the U.S. tariffs on citrus fruit, for example, would hit the pocketbooks of voters in Florida while the duties proposed by the EU on textiles would hit industries based in the Carolinas.
Bureau Report
Steel producers warn that more towns will join the rust belt unless the tariffs ranging up to 30 per cent are continued.
If he refuses to ignore the ruling and continue protection, with less than a year for the next presidential election, he would anger voters in key steel-making states such as Pennsylvania, Ohio and west Virginia.
But if he maintains the tariffs, he would risk angering industries in other states that would be hurt by the retaliatory duties which could be imposed by the EU and other countries.
The EU's list of targeted products includes many that were clearly chosen for their political impact in the U.S. tariffs on citrus fruit, for example, would hit the pocketbooks of voters in Florida while the duties proposed by the EU on textiles would hit industries based in the Carolinas.
Bureau Report