The European Commission has declared the US exclusions from protectionist steel measures ?manifestly insufficient'. At the time of going to press the European Commission was due to present its recommendations on short-term countermeasures against the US to the general affairs council on July 19 2002. The short list of punitive tariffs amounts to $380 million and was set to be discussed by the council on July 22 2002. The US steel safeguards introduced in June this year, affected E2.3 billion ($2.1 billion) of EU steel exports. The US exclusions only cover some 333,000 tonnes, which the EU estimates, is only around a tenth of exports. The EU claims that the US safeguards are damaging the US economy by creating artificially high prices as well as affecting foreign exporters. It is also fully expecting the WTO to condemn the measures next year.
June 30 2002