The Spokesman-Review Newspaper
The Spokesman-Review Newspaper The Spokesman-Review
Spokane, Washington  Est. May 19, 1883
Current Temperature
38°F
Current Conditions
Light rain
View complete weather report

Color Scheme

Subscribe now

WTO approves sanctions on U.S. exports

Barry Virkler tosses an apple while sorting Cortland apples in Westmoreland, N.Y. The World Trade Organization on Friday approved stiff sanctions on a wide range of American exports. (Associated Press / The Spokesman-Review)
Leigh Stroope Associated Press
Barry Virkler tosses an apple while sorting Cortland apples in Westmoreland, N.Y. The World Trade Organization on Friday approved stiff sanctions on a wide range of American exports. (Associated Press / The Spokesman-Review)

WASHINGTON — The World Trade Organization imposed penalties Friday on U.S. exports ranging from apples to textiles, escalating a trade dispute the Bush administration has struggled to defuse by unsuccessfully urging Congress to repeal legislation aimed at protecting American steelmakers.

The administration signaled it would accept the penalties short term, but also warned that the United States would aggressively protect its own trading interests and expects fair treatment from the WTO.

“We’ve worked hard to comply with the WTO,” President Bush said, speaking to reporters in Crawford, Texas. “It’s important that all nations comply with WTO rulings.”

Bush said he has worked with Congress “to get in compliance,” and “we expect the WTO as well to treat our trading partners as they treat us.”

In Geneva, the 148-nation WTO, which referees global commerce, approved punitive taxes long sought by the European Union and other countries because of a law they say unfairly protects U.S. steel companies and other industries.

EU trade chief Peter Mandelson said the sanctions could be applied early next year.

The 2000 law, known as the Byrd amendment for its backer, Sen. Robert Byrd, D-W.Va., lets the U.S. government fine foreign companies that it judges to be selling goods in America at below-market prices. The revenue is paid to U.S. companies to help them better compete.

Two years ago, the WTO ruled the law was illegal, arguing that it punishes exporters to the United States twice: First they are fined, then those fines are given to their competitors.

American officials said Friday that the United States would comply with the ruling that declared the law illegal.

But WTO members expressed skepticism about the compliance promises.

“The United States cannot point to any progress for the repeal of the Byrd amendment,” even though it has “received ample time to bring itself into compliance,” said Canada trade official Rambod Behboodi.

EU trade official Raimund Raith said Brussels wants the Bush administration to “transmit this message to Congress” and defend “U.S. credibility in the WTO.”

But overwhelming Senate support for the Byrd amendment makes changes unlikely.