WASHINGTON (Reuters) - U.S. steel-state lawmakers and other members of Congress criticized the World Trade Organization Friday for ruling against emergency steel tariffs imposed by the Bush administration last year.
Sen. Jay Rockefeller, a West Virginia Democrat, called the decision a "disgrace," saying the United States had every right to levy the duties in response to a huge surge of subsidized steel that flooded the U.S. market beginning in 1998 and drove 35 domestic steelmakers into bankruptcy.
The U.S. Trade Representative's Office said it would appeal the ruling at the appropriate time.
"It's not the president's steel program that's on trial, but the legitimacy of the WTO system itself," said Rep. Phil English, a Pennsylvania Republican.
A WTO panel issued a final ruling Friday against the steel tariffs, which ranged up to 30 percent in 10 product categories. The decision had been expected since March, when details of an interim report leaked.
The 15-nation European Union warned the United States it could face sanctions on hundreds of millions of dollars of its exports if it did not drop the tariffs or appeal the ruling within five days of its formal adoption by the WTO membership, which is expected in the next several weeks.
"We are pleased that the panel rejected many of the challenges to the safeguard measures on steel products that the president imposed," USTR spokesman Richard Mills said. "However, where the panel found against the United States, we disagree, and we will appeal."
President Bush imposed the three-year steel tariff program in March 2002 to give the U.S. steel industry time to restructure after the string of bankruptcies.
In an interview Thursday, U.S. Commerce Secretary Don Evans said Bush would decide this autumn whether to end the tariffs early or keep them in place for the full three years.
EU officials said if the United States lost the appeal it also would have just five days to drop the tariffs or face retaliation. That ruling is expected by year end.
Rep. Sander Levin, a Michigan Democrat, said the Bush administration had compiled a poor record at the WTO.
"The administration has overseen the loss of 14 out of 19 cases in ... which the U.S. was a defending party," he said.
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