GENEVA (Reuters) - World Trade Organization judges have rejected a U.S. appeal of a WTO panel ruling that countervailing duties on leaded bars from Britain violated open trading rules, the body revealed Thursday.
In a report issued on the WTO Web site, the three judges recommended that the United States be asked to remove the duties, which Washington said were imposed to make up for state subsidies once given to British steelmakers.
The case against the duties -- on 1994, 1995 and 1996 imports of leaded bars produced by United Engineering Steels Ltd. and British Steel Engineering Steels Ltd. -- was brought to the WTO by the European Union.
The United States said the duties were justified because of subsidies given to the formerly state-owned British Steel Corp. before it was privatized in 1988.
British Steel's privatized successor, British Steel Plc, merged last October with Hoogovens of the Netherlands to form Corus.
The initial WTO panel ruled against the duties last December, saying they were inconsistent with U.S. obligations under the 136-member organization's agreement on subsidies and countervailing measures.
The United States said in January it was appealing the panel ruling and would challenge some of its legal interpretations.
In the latest ruling, the WTO's quasi-judicial Appellate Body said it was upholding the panel report.
The report and the appeals ruling are expected to be automatically approved by the organization's Dispute Settlement Body (DSB), grouping all WTO members, within the next month.
Within 30 days of the approval, the United States will have to report to the DSB on how and when it plans to implement the ruling.:
