WASHINGTON
D.C., June 8 (IslamOnline & News agencies) - The European Union
(E.U.) has taken the first steps towards a possible imposition of
sanctions against the United States in protest to the U.S.’ new
steel tariffs. However, the gestures seem to be regarded as threats as
opposed to plans for actual action.
E.U.
foreign ministers were due in Luxembourg Monday to give the go-ahead
to a process that could lead to retaliatory sanctions against the U.S.
tariffs on steel imports that have infuriated Washington's trade
partners.
The
sanctions will not take effect immediately, but the E.U. executive
commission will have to inform the World Trade Organization (WTO) of
its intentions by June 18 at the latest, E.U. sources said, news
agencies reported.
The
E.U. appears for the present to be making only threatening gestures to
prompt Washington into greater flexibility, Agence France-Presse (AFP)
reported.
The
U.S. and its trading partners are at loggerheads over tariffs of up to
30%, which the administration of President George W. Bush introduced
in March to protect ailing U.S. steel mills from foreign competition.
The
E.U. and other steel-making nations in Europe, Latin America and Asia
say the tariffs violate WTO rules, and are challenging them at the
organization's headquarters in Geneva.
Washington
is lukewarm to Brussels calls for compensation on tariffs, preferring
instead to make targeted exemptions.
On
Friday, it said it was exempting 61 foreign steel products from the
tariffs, including European products.
The
15 E.U. foreign ministers are to vote in Luxembourg Monday on overall
Commission proposals to settle the conflict, including two lists of
U.S. products, which could be subject to tariffs if negotiations with
Washington break down.
"It's
smarter to keep sanctions ready in your pocket to see what that
produces," said Anthony Gooch, spokesman of E.U. Trade
Commissioner Pascal Lamy.
"If
we shoot now, their motivation to concede something could not only be
reduced, it could disappear. On the other hand, if we maintain means
of pressure, the motivation will be greater."
In
addition to steel, the two E.U. lists for possible tariffs cover U.S.
consumer products such as clothing and fruit juice.
The
first list, amounting in value to some 380 million euros (approx 357
million U.S. $) could go into force at the beginning of August if
negotiations with the U.S. are not concluded by then.
The
Commission wants to give Washington until some time in July to
consider its position.
If
talks fail, the E.U. ministers will hold a final vote the following
month to authorize Brussels to go ahead with reprisals.
Monday
will be an opportunity for E.U. member-states to demonstrate unity in
the face of attempts by Washington to divide them over the issue.
Sources close to the current Spanish E.U. presidency indicated that
consultations over the last week had produced a qualified majority
required for approval of the Brussels battle plan.
The
61 exemptions announced by Washington Friday were chosen from requests
made by individual companies, including European conglomerate Arcelor
and Anglo-Dutch group Corus, for specific categories of steel