I learned in childhood that there is nothing wrong in passing on facts that you have read, seen or learned — regardless of whether they make people happy or not. The Financial Times of April 11 said that the US has warned China about exerting pressure with “the imperialist European stray dogs” who oppose the tariffs on steel imports imposed by the US. The US also reminded China that its steel exports are minute in comparison to China’s exports to the US last year. And that China’s trade surplus with the US is nearly $ 80 billion and that China is looking forward to US investments of $50 billion annually. Amazingly, two months ago the US Treasury said it opposed high tariffs on steel exports that are counter to the principles of free trade. At the same time the US was lobbying for tariffs, without any involvement from its important markets such as European countries, China, South Korea, Japan, India, Latin America and Brazil.
In fact, the US move to impose tariffs seems to oppose what it has been preaching for the past fifty years. The European Union stated that it will counter the US attack using all available means and it is likely that the WTO will need to step in and have a say as well. It is evident to all that the US action violates WTO rules. To add insult to injury, Australia recently announced that the US has granted it a tariff exemption on certain steel products amounting to 75 percent of its steel exports. I wonder if, on his last trip to the US to discuss Iraq, the UK Prime Minister was seeking similar exemptions. Perhaps the US is exempting some countries but it is evident that the Europeans will not accept a partial arrangement. The Europeans are determined to abolish US tariffs on steel completely and it is unlikely that the US will reconsider. The
Europeans are keen to demonstrate that the US must step down from leading the WTO and hand over to the Europeans. One of the reasons, the Europeans say, is the US power struggle between the White House, the Administration and Congress plus the lobbying that accompanies Congressional elections every two years. The Europeans suggested the US steel industry be restructured in order to cut capacity and compensate redundant workforce. If that is not accepted, the Europeans will boycott nearly 300 products from the US. This will force the US to think twice about the damage to Europe and other customers as a result of US policies. To support the plan, the president of the European Union has suggested a plan which will probably not be accepted by the US as its idea of absolute power makes it blind to any logic but its own. Other nations will accept US power and leadership only if it is used fairly. If the EU imposes counter measures, this could lead to a deadlock that puts the WTO at risk. Congress might even force the US to leave the WTO in line with the Dole Law of 1994.
