§ Mr. HoyleTo ask the Secretary of State for Trade and Industry if she will make a statement on the impact on British industry of the US steel tariff. [83918]
§ Ms Hewitt[holding answer 28 November 2002]: On 5 March 2001, President Bush announced the imposition of increased duties on imports of a wide range of steel products following a safeguard investigation under Section 201 of the US 1974 Trade Act. Based on 2001 figures, 46 per cent, of UK steel exports equivalent to around 215,000 tonnes were covered by the measures. This equates to approximately 2 per cent, of UK producers' total sales of steel industry products. Subsequently the US Authorities announced exclusions resulting in 70 per cent, of UK steel trade with the US being unaffected by the US safeguard action. The Government will continue to take close interest in the US response to further requests from UK companies for exclusions, and will intervene with the US Authorities if necessary.
Following the US decision, the EU took the precautionary measure of establishing its own safeguard action to protect against a surge of imports into the EU diverted from the US market. In addition, the EU, together with a number of other WTO members (including China, Japan, Korea, Norway and 847W Switzerland) is challenging the US safeguard measures in the WTO. The Dispute Panel ruling is expected in March 2003.