AFX.COM | November 18, 2003
US steelmakers have agreed to ending tariffs on steel imports earlier than scheduled after the White House urged the companies to avert a threatened transatlantic trade war, the Wall Street Journal reported.
But the EU sees itself in a strong position and has frowned on suggestions of a compromise over the tariffs, which the World Trade Organization last week ruled were illegal, the newspaper added.
People close to the deliberations of the steelmakers told the Journal the US industry agreed to roll back the three-year tariffs on a wide variety of steel products before their original expiration date in March 2005. Instead, the tariffs would end in the autumn of 2004.
The agreement also calls for accelerating the scheduled reduction of the tariff level. Under the proposed compromise, the current tariff of 24 pct on many steel products would fall by about a third. It would fall by another third in March 2004. Currently, the tariff level, which began at 30 pct last year, is scheduled to fall to 18 pct in its third year.
But European trade officials have shown little interest in compromising on the levies, while US steel consumers, including automotive-parts makers, are also unlikely to be impressed by the compromise proposal, the Journal noted.
The White House and the major US steel companies declined to comment.
President George Bush is expected to discuss steel tariffs during an official visit to the UK starting tomorrow.AFX.COM:
