A measure approved in 2000 that allowed tariffs collected from countries accused of "dumping" goods on the U.S. market at below-cost levels will be causing trouble as early as today.
The World Trade Organization is expected to approve stiff sanctions on U.S. exports ranging from almonds to ski jackets. The aim is to punish the United States for failing to repeal the Byrd amendment. The 2000 law was ruled illegal in 2002 by the WTO. The law allows American companies to receive proceeds from duties levied on foreign rivals for alleged "dumping" on the U.S. market.
The WTO was scheduled to give the green light to sanctions on Wednesday, however, U.S. trade diplomats held talks with counterparts in the European Union and other countries, according to wire service reports.
In August, a WTO arbitrator approved penalties of up to 72% of the money collected from foreign exporters and handed to American companies and said winners should submit lists of potential targets. Under WTO rules, however, formal authorization must come from the dispute settlement body.
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