WASHINGTON (Reuters) - The United States is unlikely to overturn a new anti-dumping measure unless ordered to by the World Trade Organization, a leading U.S. senator told Reuters.
"I think it will take a WTO decision that it's a violation of our trade agreements to get Congress to act on it," Sen. Charles Grassley, Iowa Republican, said regarding the so-called "Byrd Amendment" approved by Congress in the autumn of 2000.
The provision, named for its chief sponsor, Sen. Robert Byrd, a West Virginia Democrat, allows industries to collect the proceeds of anti-dumping and countervailing duties imposed on unfairly traded imports. Previously those revenues went into the Treasury.
"I think it's bad policy. But once you get it done, it's done. It's difficult to undo it," Grassley said. "I say so mostly out of respect for Bob Byrd and the fact that he is a very powerful member of the Senate."
The European Union, Japan and other U.S. trading partners have strongly protested the new provision, arguing that it would encourage U.S industries to bring anti-dumping and countervailing duty cases.
Supporters said the provision is needed because many times foreign suppliers continue to flood the U.S. market with imports despite the duties that have been imposed.
The EU and other opponents of the measure have asked for consultations with United States under the WT0. That is the first step before beginning dispute settlement proceedings.
Grassley, who takes over this year as chairman of the Senate Finance Committee, expressed irritation the Byrd amendment was attached to an appropriations bill without Finance Committee approval.
"We're going to be cognizant of the jurisdiction of the Finance Committee, be jealous about protecting it and things like that... shouldn't happen again," he said.:
