CBI calls for end to US steel tariffs
The Confederation of British Industry (CBI) is to call on the US government to drop its “illegal” tariffs on steel imports.
As US president George W Bush visits the UK this week, CBI president John Egan will tell the pro-business campaign group’s annual conference in Birmingham that the US risks sliding further into isolationism and protectionism.
Mr Egan is expected to say on Monday: “The US government’s stance on steel tariffs is not only illegal it is damaging business on both sides of the Atlantic.
“I urge the president to abandon the tariffs as soon as possible.”
The World Trade Organisation ruled last week that the Bush administration’s imposition of tariffs on steel imports was illegal.
Tariffs of up to 30 per cent were imposed last year to protect domestic US industries.
The European Union has warned it may impose £1.2 billion pounds of sanctions against the US if the Bush administration refuses to make concessions.
Trade and industry secretary Patricia Hewitt is set to address the conference on Monday, alongside WTO director general Supachai Panitchpakdi.
Ms Hewitt yesterday called on the US government to remove the ‘unlawful’ tariffs on steel imports: “From the moment when the US imposed those tariffs, I stood with our steelworkers against the American administration, and we made it very plain publicly and privately that we thought those tariffs were unlawful.
“I hope that, over the next couple of weeks, president Bush will indeed decide to lift these tariffs.”
She warned of a possible ‘trade war’ between Europe and America if the tariffs were not reversed before the beginning of December.
Ms Panitchpakdi told the BBC yesterday: “The time has quite clearly come for president Bush to say we’ve done those tariffs, we don’t need them any longer, they are unlawful, even if the Americans didn’t initially accept that.”
“It is time for them to go because if they don’t go by the first week in December we will be into a trade war with European retaliations against American imports.”
Prime minister Tony Blair hopes to convince his American counterpart to drop steel tariffs as such a move would indicate the continuing “special” relationship between the US-UK and would boost his party’s deflated appeal.
