*EPF410 01/15/2004
Text: U.S. Seeks WTO Arbitration on Proposed Byrd Amendment Sanctions
(USTR's Veroneau says retaliation claim not based on actual harm) (300)

The United States will object to proposed retaliation against a U.S. dumping law provision called the Byrd amendment, which the World Trade Organization (WTO) had ruled illegal, the Office of the U.S. Trade Representative (USTR) says.

The Byrd amendment, passed by Congress in 2000 and named for sponsor Senator Robert Byrd, authorizes payment of antidumping duties to the companies that petitioned for them. Previously antidumping duties went into general Treasury revenues.

USTR general counsel John Veroneau issued a statement January 15 shortly after the European Union (EU), Canada, Japan, Brazil, South Korea, Chile, Mexico and India sought authority from the WTO in Geneva to impose retaliatory sanctions.

"The retaliation being sought by the other complaining parties does not appear to be based on actual harm to their exports," Veroneau said. "Accordingly, we will object to their proposed retaliation, sending this matter to arbitration."

A December 27 deadline for compliance with the WTO ruling passed without action by the United States. Veroneau said the Bush administration continues to work with Congress for compliance.

Following is the text of the USTR statement:

(begin text)

January 15, 2004

Statement of John Veroneau, General Counsel for the U.S. Trade Representative's Office, concerning the Complaining Party Request for Authorization to Suspend Concessions in CDSOA (Byrd Amendment) Dispute

We will continue to work with Congress to comply with the WTO ruling this year. We appreciate the willingness of some of the complaining parties to give us additional time to accomplish this goal. The retaliation being sought by the other complaining parties does not appear to be based on actual harm to their exports. Accordingly, we will object to their proposed retaliation, sending this matter to arbitration.

(end text)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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