Japan says may impose duties on U.S. goods
(Reuters)
Updated: 2005-07-28 11:36

Japan is considering imposing retaliatory duties on U.S. goods to counter subsidies paid by Washington to companies under an anti-dumping programme ruled illegal by the World Trade Organisation, Japan's top government spokesman said on Thursday, reported Reuters.

The Nihon Keizai business daily reported on Thursday the tariffs could amount to some $76 million on U.S. steel and ball bearing products, and would be imposed from September.

"We are considering the move, in line with WTO regulations," Chief Cabinet Secretary Hiroyuki Hosoda told a news conference. But he declined to say when and what goods would be subject to the levies.

It would be a first for Tokyo to impose retaliatory duties.

The plan is likely to call for a 15 percent levy on about 10 steel products from the United States, including ball bearings, Kyodo news agency said, citing sources familiar with the matter.

It would effectively reduce the value of Japanese imports of U.S. steel products by about 5.6 billion yen ($49.80 million), Kyodo said.

The United States has paid out more than $1 billion to U.S. ball bearing, steel, seafood, pasta, candle and other companies under the Continued Dumping and Subsidy Offset Act of 2000 -- otherwise known as the Byrd amendment after one of its chief sponsors, Sen. Robert Byrd, a West Virginia Democrat.

The programme distributes money raised by duties on imports the United States has determined are subsidised or unfairly priced to companies that sought the protection.

Previously, those funds went into the general U.S. treasury.

In June, Washington began steps to pay hundreds of millions of dollars in new subsidies under the amendment.

The WTO has declared the programme to be illegal in a challenge brought by the EU, Canada, Japan and other trading partners.

Tokyo plans to keep any levies in place until the Byrd amendment is repealed, media reports said. In June, Tokyo called on Washington to repeal the amendment by the end of July.

"Our basic stance (for the amendment) to be swiftly repealed is unchanged," Hosoda said. He added that he did not expect the counter-tariff measures, if implemented, would hurt U.S.-Japan relations.

Brussels has imposed about $28 million in retaliatory duties on U.S. paper, clothing, fabrics, footwear and machinery, and Ottawa has imposed $14 million worth of similar duties on U.S. cigarettes, oysters and live swine.

The Bush administration has repeatedly proposed repealing the Byrd amendment, but it remains popular with many members of Congress despite the WTO ruling.