Fratboy Blinks in Steel Tariff Row

http://www.guardian.co.uk/usa/story/0,12271,1097687,00.html

Bush blinks in steel tariff row

White House signals readiness to comply with WTO ruling and avoid a trade
war with Europe

Charlotte Denny
Tuesday December 2, 2003
The Guardian

British industry yesterday welcomed the latest signals that the White House
is inching closer to repealing controversial steel tariffs which have
inflamed transatlantic trade ties.
With a tit-for-tat trade war looming, Congressional sources said Washington
had decided to comply with the World Trade Organisation's ruling last month
that the 30% tariffs on foreign steel imports imposed in March, violated
global trade rules.

American newspapers reported that President Bush will lift the tariffs on
steel imports by Friday, just days before the European Union is poised to
retaliate with $2.2bn (£1.3bn) of punitive tariffs.

A spokesman for the US trade representative said: "No decision has been
made. We are reviewing our options."

Digby Jones, director-general of the Confederation of British Industry, said
any shift in the US position would be a victory for the EU and the
government's lobbying during Mr Bush's recent visit.

"If it is true, then it will be excellent news for jobs in the UK, jobs in
America and for the rest of the world," he told the Guardian. "It's a great
sign for the EU that it can make the US sit up and take notice."

Washington was granted more time last week by its trading partners before
the final rubber-stamping of the WTO decision which would trigger the EU's
retaliation.

The extension gives the administration an extra nine days to withdraw the
tariffs, avoiding a potentially embarrassing clash with a trip by Mr Bush to
Pittsburgh, the heart of America's steel industry, today.

US steel manufacturers were still insisting last night that they had not
given up hope that the administration would keep the tariffs. "I have not
heard anything from the White House about what the president's decision is
going to be... Any time we ask about a decision, they say the president will
let people know when he's made one," said Dan DiMicco, president of Nucor,
the largest US steel maker.

But privately Bush aides have been briefing that the tariffs have served
their purpose by allowing a window for consolidation in the industry which
has improved profitability.

"Adjustment is going to happen more quickly without the tariffs," an
administration official said. The White House is also believed to be have
been influenced by calculations that more jobs have been lost in companies
using steel, because of costlier imports, than have been saved.

"Bush is going to do the right thing. We're very pleased," said David
Phelps, president of the American Institute for International Steel, which
represents steel importers.

To soften the blow to US steel makers, the administration was expected to
promise to step up enforcement of rules that penalise steel importers for
dumping their products in the US at below-market rates.

Mr Jones said: "America can be a force for good in trade and the world
economy but not when it is indulging in a bout of protectionism."



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