Japan seeks more steel tariff concessions

Advertiser News Services

U.S. tariffs could add $1 million in costs for the Maui Pineapple Co., which uses steel imported from Japan to make cans at its factory in Kahului. Advertiser library photo • Feb. 2, 2002 Maui canner still hoping for exemption Maui Pineapple Co. officials said they did not win an exemption from the steel tariff, which affects one of its key suppliers. The company imports Japanese steel to make cans at its Kahului factory, and the 30-percent tariff stands to add $1 million to its costs in 2002. Company president Doug Schenk said he is still holding out hope for an exemption from the tariff. Maui Pineapple, Hawai'i's last pineapple canning business, has lost millions of dollars in recent years, and Schenk has said the tariffs could force the cannery's closure. — Advertiser staff

U.S. trade officials said Friday that 61 products, including plate, hot- and cold-rolled, stainless bar and wire rod, tin mill and welded tube — imports of which totaled 136,000 metric tons last year — would be excluded from tariffs of as much as 30 percent that Washington introduced in March to protect its steelmakers from cheap imports.

"The exclusion announced last Friday did not include what we're looking for," said Katsusada Hirose, Japan's vice minister of Economy, Trade & Industry. "We will continue talks with the U.S. to gain more exclusions."

The Japanese government, which complained to the World Trade Organization about the U.S. import duties, has said it will impose 100 percent duties of $4.88 million on steel from the United States in retaliation for the U.S. tariffs. Japan says the U.S. levies will cost its companies as much as $123 million a year.

U.S. officials said the exclusions, the first announced in a process that will continue on a weekly basis through early July, are aimed at ensuring U.S. steel consumers get products they need that aren't available from U.S. steelmakers.

European Union foreign ministers also have backed proposals calling for retaliatory tariffs on U.S. exports despite the conciliatory moves by the United States.

Spanish Foreign Minister Josep Pique said there was "unanimous support" for the measures among the 15-nation bloc.

The EU says the American tariffs are illegal under WTO rules. WTO rules allow the EU to impose retaliatory measures if no deal for compensation — usually lowering tariffs or raising quotas on other imports by a comparable amount — is reached with the United States.

The EU's executive commission has drawn up two lists of products that could be hit with retaliatory tariffs of up to $888 million.

Yet despite the tough talk, some said efforts to reach an amicable compromise with Washington could be near, though they declined to be specific.

Officials said the EU would file the lists at the WTO in Geneva this month, but added EU governments would not decide whether to implement the shorter list, worth $341 million, until mid-July.