BBC: EU imposes tariffs on US goods

Fencer128

Platinum Member
Jun 18, 2001
2,700
1
91
Hi,

Here is the story.

The EU has said US imports are to face duties of $200m (£120m) from March 2004.

The European Commission decided to impose the duties in retaliation against US tax breaks for exporters, which have been criticised by the World Trade Organisation.
The World Trade Organisation (WTO) gave the EU the right to impose 100% tariffs on more than $4bn of US exports after ruling that the US tax breaks were illegal.
Meanwhile, the EU has also warned it is considering sanctions on another $2.2bn of US goods in a separate dispute over steel imports.
The dispute arose after President Bush imposed tariffs of up to 30% in March 2002 in an effort to protect US steel producers from foreign competition.
Any thoughts?

Cheers,

Andy
 

freegeeks

Diamond Member
May 7, 2001
5,460
1
81
while I agree with the WTO decision, I don't think that a trade war between the EU and the USA is the best thing to do. I hope they can resolve the situation quickly


the economic problems on both sides of the atlantic are already big enough
 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
0
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Although a negotiated settlement is always best, I think it's in Europe's short-term interest to impose tariffs. The Bushies have the advantage of favorable dollar-euro exchange rates but they need export activity to help prop up the US economy. If the EU really dropped the hammer, the Bushies would run to the negotiating table. I'm not sure negotiations will produce much, because I don't see the Bushies repealing tax benefits for US exporters.
 

Mardeth

Platinum Member
Jul 24, 2002
2,609
0
0
I think this is good althought I dont fully understand the problem...
 

dpm

Golden Member
Apr 24, 2002
1,513
0
0
I thought that it wasn't about the US steel tariffs as much as the US FSC (foreign sales corporation?) subsidies.

Its been a while since I paid attention, but the EU has taken the US to arbitration at the WTO a couple of times - the first time they ruled against the US but it didn't change the deal enough to comply, and then they were ruled against again. The EU doesn't really have much choice but to take the tough line this time.
 

GrGr

Diamond Member
Sep 25, 2003
3,204
0
76
Bush is trying to export parts of his economic problems. The EU cannot be too happy with Bush. Besides these issues with the tariffs the policy of weakening the dollar has resulted in the strengthening of the euro and weakened Europe's competitiveness when it comes to exports. Meanwhile Japan and China have bought US treasury bonds to the tune of $ 56 billion to keep their own currencies from strenghtening too much visavi the dollar to protect their own exports. So the euro is left to take the brunt.
 

maluckey

Platinum Member
Jan 31, 2003
2,933
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It was a logical step to take for the EU. At this point, the European currency cannot take the beating that it is getting. A tariff generates revenue, and allows home-grown companies a better footing to sell their goods. One thing that has to be taken into consideration is the recent Euro's adoption of varied economies, with varied currency strengths. Nobody would say that the Czech Republic had currency as strong as Germany, but under the Euro, this is true.

Good business decision. The U.S. also does the same thing when our currency rises. Those trying to make their anti-Bush daily statement are way off on this one.
 

freegeeks

Diamond Member
May 7, 2001
5,460
1
81
Originally posted by: maluckey
It was a logical step to take for the EU. At this point, the European currency cannot take the beating that it is getting. A tariff generates revenue, and allows home-grown companies a better footing to sell their goods. One thing that has to be taken into consideration is the recent Euro's adoption of varied economies, with varied currency strengths. Nobody would say that the Czech Republic had currency as strong as Germany, but under the Euro, this is true.

Good business decision. The U.S. also does the same thing when our currency rises. Those trying to make their anti-Bush daily statement are way off on this one.
i just want to point out that this discussion already existed before the strong Euro.
this has nothing to do with a strong euro<->weak dollar.

the ECB has a strong euro policy. the ECB doesn't want to take steps to weaken the euro

IMO the whole strong euro<-> weak dollar is only a minor issue in this debate

 

GrGr

Diamond Member
Sep 25, 2003
3,204
0
76
I was thinking more along the lines that Bush's tax cuts were poorly designed to stimulate the US economy. Bush had his proirities wrong and the Europeans know it.
 

GrGr

Diamond Member
Sep 25, 2003
3,204
0
76
What are the odds that Bush will retaliate for the retaliation?
 

dpm

Golden Member
Apr 24, 2002
1,513
0
0
Originally posted by: 0roo0roo
yay, hope bush retaliates.
you hope that the US retaliates to the EU's retaliation? wow.. that'd end good...
 

Alistar7

Lifer
May 13, 2002
11,983
0
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Alistair7 about me:

Youre just a whiny ass anti_s idiot who doesnt even have the brains to realize he is on an American site on the American Internet, thats right, the AMERICAN INTERNET. Do you think those lazy fools in the EU could have created this? So stay off the net, or at least off American sites if you hate the US so much. you're worse than the drunk at the bar cursing everyone for drinking.....


Freegeeks, while I am touched I am still such an obsession in your life, at least get the spelling right ;) I still stand by that statement BTW.....


There are plenty of EU economic tactics that create an unfair playing field and wreak havoc on the develoing world solely out of protecting their own interests. There is the genetic food issue, which is only done to protect EU farmers, not out of any legitimate scientific basis. Fencer, ready to get back into the rice debate? LOL.


Missed you all, been out of town testing on the Raptor F-22 and the A10, so American pilots can be safe while they kill, I know ya all missed me......
 

dpm

Golden Member
Apr 24, 2002
1,513
0
0
Originally posted by: Alistar7
Alistair7 about me: Youre just a whiny ass anti_s idiot who doesnt even have the brains to realize he is on an American site on the American Internet, thats right, the AMERICAN INTERNET. Do you think those lazy fools in the EU could have created this? So stay off the net, or at least off American sites if you hate the US so much. you're worse than the drunk at the bar cursing everyone for drinking..... Freegeeks, while I am touched I am still such an obsession in your life, at least get the spelling right ;) I still stand by that statement BTW..... There are plenty of EU economic tactics that create an unfair playing field and wreak havoc on the develoing world solely out of protecting their own interests. There is the genetic food issue, which is only done to protect EU farmers, not out of any legitimate scientific basis. Fencer, ready to get back into the rice debate? LOL. Missed you all, been out of town testing on the Raptor F-22 and the A10, so American pilots can be safe while they kill, I know ya all missed me......
Hey, Alistar, you have a point. So maybe you'd like to get off the EUROPEAN WORLD WIDE WEB. So stay off the web, if you hate Europe so much ;)

Seriously, though, both the US and the EU are guilty of protectionism, especially in terms of primary industry, whether its the EU CAP, or massive farm and sugar subsidies in the US. Each time the other will take the case to the WTO to rule on. This time the WTO has ruled, twice, against the FSC act, and now the EU has to act.

As for the GM controversy - the last I heard the EU was proposing to accept GM products if they were all labelled as such, but the biocorps were unhappy at this. The EU stance on the issue wasn't really about protectionism (EU farmers can grow GM crops too, and there are many EU biotech firms) but about public distrust of GM foods, and the relative immaturity of the technology. I think that proper labelling is a good solution - if the biotech firms want to educate the public to trust their products thats great, but they shouldn't expect government to do this for them.
 

charrison

Lifer
Oct 13, 1999
17,033
1
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Originally posted by: GrGr
I was thinking more along the lines that Bush's tax cuts were poorly designed to stimulate the US economy. Bush had his proirities wrong and the Europeans know it.
This is about corperate taxes that where in place before Bush came into office, but thanks for playing.
 

Alistar7

Lifer
May 13, 2002
11,983
0
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Originally posted by: privatebreyer
Thats ok, I wasn't buying anything French anyway and I can't afford a Mercedes or a Beamer.
Me either, just got new tires for the car, prefer to use Michellin, great tires, but not this time.....

I did not realize the Web was the product of the EU, or that Anandtech was based out of the EU. I thought this was all Al Gore's brainchild ;) I do not hate the EU, just question the motives of certain leadership. I have no problem with countries such as France, Germany, etc. supporting Saddam, but don't do it behind closed doors while upfront you are signing (and ignoring) UN resolutions that state otherwise. Quit being pu**ies about it already. They made a mockery of the legitimate power and use of international diplomacy. Yes I know it was really Bush who did that, and the US is the one who lost any credibility, which is why they all ran to us and him to be the leaders in the Israeli/Palestinian situation....

As far as GM foods go we have been using them in the US for over 10 years and there have been NO scientific studies that have conclusively proven them to be harmfull. Most likely EU citizens are eating them as we speak, not as one piece but guranteed they are being used as ingredients in various products that are finding their way onto shelves and dinner tables there.

I have to agree both the US and the EU have used questionable policies in order to protect their own economic interests, it's just sad mostof the time it is the third world that suffers as an end result. The leaders of those countries should be the ones who settle these little battles in my opinion, obviously the WTO is just making things worse. If you are unsure what I mean ask Fencer about the rice situation, he is now officially an expert, lol.......

 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
0
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They made a mockery of the legitimate power and use of international diplomacy. Yes I know it was really Bush who did that, and the US is the one who lost any credibility, which is why they all ran to us and him to be the leaders in the Israeli/Palestinian situation....
Your attempt at sarcasm is misplaced b/c it was indeed the Bush administration that made a mockery of legitimate power and international diplomacy. And for some odd reason . . . the US is the one that lost credibility.

Deferrence to the US for the Israeli/Palestinian situation may have something to do with Israel's primary arms supplier, source of monetary support, and perpetual apologicist . . . just a thought.
 

Miramonti

Lifer
Aug 26, 2000
28,651
98
91
A WTO appeals court is set to rule on this today.

The 15-nation EU has drafted a list of euro378 million ($435 million) worth of U.S. imports ranging from cigarettes to frozen vegetables to paper products on which it is threatening to impose 100 percent import duties, effectively pricing the goods out of the EU market. To increase political pressure, many are produced in swing states that would be crucial to Bush's re-election campaign next year.
Nations Await Ruling on U.S. Steel Duties
 

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