Byrd Amendment
From Freepedia
The Byrd Amendment is also known as the Continued Dumping and Subsidy Offset Act of 2000 (CDSA). The act is American legislation closely associated with its chief sponsor, Democratic Senator Robert Byrd of West Virginia. The act changed the disposition of funds raised from duties on imports that the US government has determined to be subsidized or otherwise unfairly priced. Prior to the act, those funds were incorporated into the US budget. The Act specifies that the funds be distributed to the US companies that file pricing complaints.
This means that non-US firms which sell below cost price in the US can be fined, and the money given to the US companies who made the complaint in the first place.
The European Commission claims that since 2000, US companies have received $1 billion in anti-dumping fees redistributed to them under the Byrd Amendment.
The WTO (World Trade Organisation) ruled the Byrd Amendment wholly illegal in 2002 and although US President George W. Bush claims to desire the Act's repeal, as of July 28 2005, the United States had still not repealed the law. The US government claims to be working with Congress to amend the law.
The European Commission and seven other countries - Brazil, Canada, Chile, India, Japan, South Korea and Mexico - filed a formal protest with the WTO.
The WTO ruled that the European Union (EU) and the other countries can introduce measures which penalise the US for up to 72% of the monies raised and distributed through the Byrd Amendment.
On April 4 2005, the EU announced plans to implement limited sanctions on a selection of US goods, charging a 15% levy on U.S. paper, farm goods, textiles and machinery from May 1, 2005. This was in light of the continuing failure of the United States to bring its legislation in conformity with its international obligations. Also, on May 1, Canada imposed a 15% surtax sanction on US imports of cigarettes, oysters and live swine. The other protesting countries are expected to follow suit.
On September 1, 2005, the Japanese government will introduce 15 percent retaliatory duties on U.S. steel imports.
External links
- A brief history of the bill
- BBC report that EU may fight against the bill
- BBC report on the WTO ruling
- BBC report on the proposed European sanctions on US goods
- Foreign Affairs and International Trade Canada - Canada authorized to sanction the United States for Byrd Amendment
- CNN report on Japanese steel levies
- World Trade Organisation
