BRUSSELS, Belgium (AP) - The European Union, Japan and seven other big countries joined forces Friday to attack a U.S. measure that gives duties collected in antidumping cases to U.S. companies in the affected industries.
In what they called an "unprecedented joint action," the nations said they have asked for formal World Trade Organization consultations with Washington seeking repeal of the new law.
The law "isn't a U.S.-EU problem but a U.S.-rest of the world problem," said EU Trade Commissioner Pascal Lamy in a statement.
He said they wanted to "send a very clear signal to the U.S. on the need to repeal legislation that so clearly flies in the face of the letter and spirit of WTO law."
The measure would allow money raised from duties collected on foreign steel imports sold at below fair market prices to be used to subsidize American steel companies.
Despite signing the bill into law in October, President Clinton expressed reservations and called on Congress to amend the subsidy provision.
The Clinton administration said the legislation would not protect U.S. consumers or steel companies properly.
The provision's sponsor, Sen. Robert Byrd, D-W. Va., has argued that the purpose of antidumping laws is not to raise general tax revenues, but to aid domestic industry hurt by illegal trade practices of foreign competitors.
He estimated U.S. companies would have collected $39 million had the provision been in effect in 1999. One possible beneficiary is Weirton Steel Corp., a West Virginia steelmaker that has complained of unfair pricing by Brazilian, Japanese and Russian companies.
Signing on to the complaint with the EU and Japan were Australia, Brazil, Chile, India, Indonesia, South Korea and Thailand.:
