The European Union has imposed adjusted counter-balancing measures in response to the continuation of payments by the US government to US companies under the terms of the Byrd Amendment, which has been ruled by the WTO as incompatible with WTO rules.
The annual adjustment is required by the WTO, because the duties are tied to the annual disbursement by the US government. Since the amount paid to US companies from duties collected on EC products has increased in 2005, the level of retaliation will also increase. From May 1, measures have been set at $36.91 million, an increase on the $27.81 million applied in 2005.
Eight new products will be added to the list of products subject to the 15% additional import duty. These products include blankets, paper products, photocopying apparatus and drills.
Following a complaint by the EU and ten other WTO members, payments made under the Byrd Amendment have been ruled by the WTO to be injurious to non-US companies. While they continue, the EU and other co-complainants have grounds to take counter-balancing measures.
Since May 1, 2005, an additional import duty of 15% has been applied on paper products, textiles, machinery and sweet-corn originating in the United States.
