November 29, 2004 Seoul said yesterday it would be cautious about levying retaliatory tariffs on U.S. products, after the World Trade Organization on Friday gave Korea and six other economies the green light to enact such tariffs in response to a U.S. subsidy law. The WTO said in August that affected economies, including the European Union and Japan, could retaliate against the U.S. "Byrd amendment," which allows anti-dumping or anti-subsidy duties collected from foreign countries to be given to American companies as subsidies.

Now that the WTO has authorized the sanctions, Korea can impose up to $13.3 million in punitive tariffs on U.S. goods if it informs the trade organization of the items and the time periods for which the tariffs would be valid. Korea has already submitted to the WTO a list of American goods it wants to hit with retaliatory tariffs; the list includes detergent, glass tableware, cod and other fish products.

"We will watch Washington's moves to decide on when to retaliate," a Korean government official said.

The EU is allowed to levy up to $22.7 million and Japan is allowed to impose up to $81.9 million in trade sanctions on American products. The EU has said it will apply sanctions early next year, unless the United States repeals the Byrd amendment.

The WTO last year ruled the Byrd amendment illegal. Since then, with the U.S. Congress having failed to repeal the law, seven economies have filed proposals with the WTO to retaliate.

by Huh Kui-seek, Moon So-young symoon@joongang.co.kr

Commentary:
Yet another trade violation. Bush claims to be a free trader, just like he claims to be a fiscal conservative. Obviously he's neither and his supporters wouldn't know the difference.