BRUSSELS, BELGIUM U.S.-WTO showdown looms over steel tariffs



Norway and Japan are threatening trade retaliation.
BRUSSELS, Belgium (AP) -- The United States may have only one more week -- 10 days less than expected -- to lift steel tariffs that were declared illegal by the World Trade Organization or face stiff retaliation on American products.
A deadline announced by Norway and a report from Japan indicate that the WTO is set to finalize its decision declaring the U.S. tariffs on foreign steel illegal on Dec. 1 unless Washington acts before then. That means punitive measures totaling billions of dollars would automatically take effect five days later.
Although Dec. 1 is the regular meeting of the WTO's dispute settlement body, many expected a special meeting to be called Dec. 10 -- the last day possible -- to give President Bush more time to comply with the WTO's Nov. 10 ruling.
Skirted issue
Bush disappointed many in Europe last week by skirting the issue during his state visit to Britain. Despite pressure from his close ally, Prime Minister Tony Blair, to repeal the tariffs, Bush said only that he would make "a timely decision."
WTO officials could not be reached Sunday to confirm whether the item had been added to the Dec. 1 agenda.
But the Norwegian government on Friday said it would begin imposing a 30 percent duty on roughly $12 million worth of American imports beginning Dec. 6 unless Washington acts. Its list includes steel products, apples, gas stoves and hunting weapons.
"The duties will be imposed as soon as the World Trade Organization formally resolves that the U.S. measures violate WTO rules," a Foreign Ministry statement said. It said that was expected on Dec. 1, and that Norway would impose the tolls after a required five-day waiting period.
In Tokyo, Kyodo News reported Saturday that Japan also will slap a 30 percent tariff on $98 million in U.S. steel products if Washington does not act by Nov. 30 -- next Sunday.
To announce penalties
The biggest hit would come from the 15-nation European Union, which has threatened 100 percent tariffs on $2.2 billion worth of U.S. imports.
Bush imposed the tariffs in March 2002. They are scheduled to remain in place until March 2005.