Japan to maintain punitive tariffs on U.S. bearings

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TOKYO, Aug. 7 Kyodo -
Japan decided Friday to keep imposing punitive tariffs on U.S. bearings for
another year from September, citing Washington's continued violation of World
Trade Organization rules, the Finance Ministry said Friday.
The measure is in retaliation over the U.S. government's practice of providing
its antidumping duties, collected from overseas companies, to U.S. rival firms
to cover their losses from cheap imports, the ministry said.
The practice was first based on the U.S. antidumping law, known as the Byrd
Amendment. In 2003, the WTO ruled the amendment ran counter to global trade
rules.
The United States repealed the amendment in 2006, but the practice has been
continuing, according to the ministry.
Japan will extend the punitive tariffs on two types of bearings. The rate of
punitive tariffs will be reduced to 9.6 percent from the current 10.6 percent,
reflecting a decline in the amount of antidumping duties provided to U.S. firms
in fiscal 2008, the ministry said. The calculation is in line with the WTO's
decision.
The government will formally endorse the decision at a Cabinet ministers'
meeting possibly next Tuesday to extend the measure beyond the earlier-set
expiry date of Aug. 31 this year, an official at the ministry said.
In the fiscal year through the end of last September, the total amount of U.S.
distribution of antidumping duties related to Japan was worth about 2.48
billion yen, down from 2.73 billion yen in fiscal 2007, according to data made
available by the ministry.
Currently, this is the only case in which Japan has been imposing punitive
tariffs. The retaliatory steps against the United States have been extended
year after year since their introduction in September 2005.
In addition to Japan, the European Union decided to extend similar trade
sanctions against the United States earlier this year, according to the
ministry.
==Kyodo
2009-08-07 23:25:23