Import Fees

A U.S. trade agency's recommendation that President Bush levy tariffs of as much as 40% on steel imports would cost steel buyers more than $2 billion a year and lead to three job losses for every one saved, a group representing steel-consuming companies said. The Consuming Industries Trade Action Coalition, representing Caterpillar Inc., Procter & Gamble Co., Deere & Co. and other steel buyers, is joining the fight against tariffs proposed last week by the U.S. International Trade Commission.

U.S. import prices fell in April for the third month in a row, reflecting declines in both petroleum and nonpetroleum products. The Labor Department said import prices edged down 0.5% in April after dropping 1.5% in March, which was earlier reported as a 1.6% decline. Economists had expected import prices to be unchanged in April. The price of imported petroleum dropped 0.5% after plunging 6.6% in March, earlier reported as a 5.9% decline. U.S. export prices were unchanged after dipping 0.

The European Union is expected to impose anti-dumping duties today of as much as 66% on imports from China of magnesia bricks used by steelmakers such as London-based Corus Group. The tariffs target Chinese exporters that accounted last year for about 15% of the European market for the product, used as a lining of the vessels in which steel is melted. The levies, which will last for six months and may be prolonged for five years, were announced Tuesday in the EU Official Journal.

The European Union announced Friday that it was prepared to end penalty sanctions on $4-billion worth of American exports to Europe. However, EU officials warned they could reimpose some of the tariffs if a dispute was not resolved over a U.S. law that showers $136 billion in new tax breaks on companies. Anthony Gooch, spokesman for the EU in Washington, said a key panel of the Council of the European Union had approved a measure to withdraw the sanctions.

The Bush administration gave notice that it would pursue an unfair-trade case accusing the 25-nation European Union of operating a confusing tariff system that harms the ability of U.S. exporters to make sales. The administration alerted the Geneva-based World Trade Organization that it wanted a hearing panel formed after failing to resolve differences in negotiations with the EU. The office of U.S. Trade Representative Robert B.

The European Union will make no further offer to cut farm tariffs to improve access to European markets in world trade talks but is prepared to negotiate on the number of items that get special protection, the EU's trade chief said. Trade Commissioner Peter Mandelson told the European Parliament that the EU would be ready to discuss which goods should be classified as "sensitive products" and thus subject to lesser import tariff cuts than the rest.

A World Trade Organization appeals panel ruled that Mexico had unfairly imposed anti-dumping tariffs on U.S. rice, rejecting Mexico's argument against a previous ruling. Mexico imposed the tariffs on U.S. white long-grain rice in 2002, claiming that it was being sold in Mexico at unfairly low prices, damaging Mexican producers. U.S. officials raised the issue before the WTO a year later.

President Bush's top trade negotiator said Wednesday that a meeting next month of 148 countries would not be able to achieve a hoped-for breakthrough. U.S. Trade Representative Rob Portman's comments came after three days of talks in London and Geneva. The discussions failed to clear roadblocks so negotiators could agree in December on the outlines of a deal to lower tariffs and other barriers for manufactured goods, services such as banking and insurance, and farm products.

The European Union's offer to cut its farm tariffs by as much as 60% falls short of expectations because the proposal allows exemptions that would block key exports, U.S. officials and industry groups said. "It is a modest step in the right direction, but I just think it is inadequate," U.S. Trade Representative Rob Portman said. "We are disappointed in the level of the tariff cuts and with the exclusions from those cuts."

European Union governments backed a deal to release Chinese textiles held at EU borders, ending a trade dispute that saw about 77 million garments pile up after imports broke through 2005 limits. The EU head office said member states had approved the deal struck Monday between EU Trade Commissioner Peter Mandelson and Chinese Commerce Minister Bo Xilai to allow half of the excess garments into the market outside quota rules, and half to be counted against limits for this year and next year.