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EU likely to seek more trade sanctions against US

Reuters, Geneva
The European Union is likely to ask the World Trade Organisation (WTO) soon for the go ahead for $40-50 million in sanctions on US goods in a long-running antidumping row, diplomats said Monday.
In another sign of transatlantic trade tension, Brussels was
expected to put the request at the next meeting of the WTO’s disputes settlement body (DSB) on November 24.
The European Union, which is backed in its complaint by seven other WTO members, including Japan, has already won the right to retaliate over the controversial US measure, the so-called Byrd amend-
ment.
But before the punitive duties are actually applied to goods ranging from ball bearings to candles, pasta and seafood, the EU must go back to the WTO a final time.
Authorisation is guaranteed, however, as the request could only be blocked by the unanimous decision of all members, including those bringing the complaint.
Diplomats said that Japan, which has initial permission to impose $80 million in duties in the same case, could join the EU in seeking the green light to act.
The other countries involved Brazil, Canada, Chile, India, Mexico and South Korea were still deciding, diplomats added, although some thought India and South Korea would join Brussels. "I would say, having worked with the Bush administration before, the US has remained in the leading role in trade liberalisation, in particular (at WTO headquarters) in Geneva,” he said.
As an example of US commitment to free trade, he mentioned a decision by Bush to scrap controversial steel tariffs in December last year after the WTO said they flouted international rules.
"Even if sometimes the rules
seem to be not really in compliance with WTO rules, the US government has been trying to bring the rules back into compliance," he said.
"All this makes the multilateral system even more credible."
Observers have warned that the US could become more protectionist in the future as concerns grow About the loss of American jobs to nimble new competitors, such as China.