US Steel Tariffs Illegal According to WTO

Recently introduced tariffs introduced by President Bush to protect the local steel industry have been deemed to be illegal by the World Trade Organisation.

The decision has been called “interim”, with the final report expected to be delivered some time next month. However, there have been very few cases where an interim decision has been reversed.

The Bush administration has said that it would appeal the decision, which effectively means that other nations could impose similar tariffs on US steel, should they lose.

The legal action was brought about by the European Union after the US placed a 30% tariff on most steel imported from Europe, Asia and South America, following the poor state of the local steel industry. While prised by the local steel industry, and trade unions, it was widely criticised by advocated of free trade.

For more information on steel manufacture, click ,here.

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