European Council, Tariff Increase on Sunglasses: on Hold

The European Council on Monday decided to wait until the World Trade Organization (WTO) rules next year on the legality of the U.S. steel safeguards and not to impose an immediate tariff increase on sunglasses (among other products) in retaliation. The restraint comes as a result of the numerous exemptions from the US steel tariffs granted by the Bush administration.

The EU expressed confidence in their ability to get even more exemptions before the end of the year. Despite the deferment of the tariff increase imposition, the EU announced that it will continue to vigorously pursue the WTO challenge against the U.S. steel safeguards. WTO action on this issue is expected in March 2003.

The EU also emphasized during the meeting that it reserved the right to increase tariffs on sunglasses (and other products) originating in the US at any date from 18 June 2002 per the original notification to WTO. Thus, the EU may still collect the additional duties retroactive to June 18, 2002.
(Source: APBiscom)