WASHINGTON (AFP) - The United States vowed to maintain tariffs to protect its struggling steel industry and said it would appeal a World Trade Organization decision calling the measures illegal.
"Where the (WTO) panel found against the United States, we disagree, and we will appeal," US Trade Representative spokesman Richard Mills said in a statement after the WTO decision was announced in Geneva.
"In the meantime, the steel safeguard measures will remain in place."
Mills added that so-called "safeguard measures" to protect an industry under certain conditions are allowed under WTO rules.
"Many countries have used them. We believe the steel safeguard measures comply with our international obligations," Mills said.
"In accordance with US law and WTO rules, the safeguard is a temporary measure, designed to help domestic producers adjust to import competition."
The statement noted that the tariff levels are being gradually decreased, and that over 1,000 waivers have been granted to foreign producers to ease the impact as US firms adapt.
"The steel safeguard measures are already working," he said. "The domestic steel industry has undergone an unprecedented level of consolidation and restructuring over the last year, making it more competitive with imports."
US President George W. Bush imposed the tariffs under the controversial section 201 of US trade law last year, which do not require evidence of "dumping" at unfair prices or with unfair subsidies.
He argued that temporary tariffs of up to 30 percent on most foreign steel were necessary to protect ailing US steel mills and their workers.
The move irked many US trading partners and some US steel-consuming industries, who argued that it had increased costs.
In Geneva, a panel of three independent experts at the WTO rejected the arguments laid down by the United States that its safeguard measures were needed because of increased steel imports that were hurting its domestic steel producers.
The European Union filed the complaint last year and was joined by Brazil, China, Japan, New Zealand, Norway, South Korea (news - web sites) and Switzerland.
The European Union, Japan and other US trade partners have threatened retaliatory measures if the steel measures are not withdrawn.
The United Steelworkers of America labor union denounced the ruling.
USWA president Leo Gerard said the decision was "the latest example of unelected trade bureaucrats undermining national sovereignty and long-established safeguard provisions of global trade agreements."
He also said Washington should stand firm on the measures.
"It is the sworn duty of the president of the United States to defend America's sovereignty and economic security," Gerard said. "Unless President Bush stands his ground on this issue, he will be abdicating that role and ceding our national sovereignty to the unelected 'world government' of the WTO."
But industry opponents of the tariffs called on Washington to abandon the measures.
"Steel consumers need for the steel tariffs to be terminated, because they are causing economic damage to the US economy. Now the international community has officially condemned this protectionist policy as a violation of global trading rules," said Consuming Industries Trade Action Coalition Steel Task Force chairman William Gaskin.
"It simply makes no economic sense to keep these damaging tariffs that are causing devastation to US steel consumers, hurting our ability to lead on global trade matters and will result in retaliatory tariffs by the European Union."
In an unrelated case, the United States slapped preliminary antidumping duties Friday as high as 119 percent on steel wire strand imports from five countries.
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