Identifier
Created
Classification
Origin
03THEHAGUE2922
2003-11-20 12:50:00
UNCLASSIFIED
Embassy The Hague
Cable title:  

TRADE MINISTER CALLS IN AMBASSADOR REGARDING U.S.

Tags:  ETRD NL WTRO EUN 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS THE HAGUE 002922 

SIPDIS

State for EB/BTA/ANA, EUR/ERA, EUR/UBI

Commerce for U/S Aldonas, A/S Lash

USTR for ASTEPHENS/CNOVELLI

TREASURY FOR OASIA

E.O. 12958 N/A
TAGS: ETRD NL WTRO EUN
SUBJECT: TRADE MINISTER CALLS IN AMBASSADOR REGARDING U.S.
STEEL SAFEGUARDS

REF: STATE 312026

UNCLAS THE HAGUE 002922

SIPDIS

State for EB/BTA/ANA, EUR/ERA, EUR/UBI

Commerce for U/S Aldonas, A/S Lash

USTR for ASTEPHENS/CNOVELLI

TREASURY FOR OASIA

E.O. 12958 N/A
TAGS: ETRD NL WTRO EUN
SUBJECT: TRADE MINISTER CALLS IN AMBASSADOR REGARDING U.S.
STEEL SAFEGUARDS

REF: STATE 312026


1. SUMMARY: Trade Minister van Gennip called in the
Ambassador on November 18 to voice very serious concerns at
the prospect of U.S. steel safeguards remaining in place
following the WTO Appellate Body confirmation that these
safeguards are WTO-inconsistent. She noted that the
Netherlands would be alert to the possibility of the USG
replacing the safeguards with other protective measures such
as revising the method of calculating antidumping and or
countervailing duties. Van Gennip said that revising the
anti-dumping, countervailing duty calculations would
"constitute a clear breech of U.S. obligations under WTO
rules." Should the U.S. replace the steel safeguards with
other WTO-inconsistent measures or fail to remove the
safeguards altogether, van Gennip said the Dutch government
would support the EU taking retaliatory measures. The
Ambassador replied that it is both the U.S. and EU interest
to see retaliation avoided and noted that he could not
speculate about the timing or nature of any action the
President might decide to take in regard to lifting,
modifying, or maintaining the safeguard measures. END
SUMMARY


2. TEXT OF 11/18 DEMARCHE BY TRADE MINISTER VAN GENNIP ON
STEEL

The Netherlands welcomes the ruling by the World Trade
Organization Appellate Body that U.S. Safeguard measures
("201 measures") on steel imports are not in compliance with
WTO rules.

The Netherlands expects the United States to comply with the
WTO findings by removing these safeguard measures on steel
imports at short notice, but ultimately five days after the
decision by the Appellate becomes final.

The Netherlands deems compliance with findings of the WTO to
be at the core of the multilateral trade system. The
further strengthening of that system is in the interest of
all participating countries. In the aftermath of the lack
of success of the 5th Ministerial Meeting of the WTO, it is
of the utmost importance that the membership of the WTO
lives up to its commitments. At the present juncture, such
compliance is even more important, as the lack of commitment
may undercut the current effort to revitalize the Doha
Development Agenda.

In the absence of US compliance with the findings of the
Appellate Body of the WTO, the parties complaining have the
right to take appropriate measures. The Netherlands will
support a decision by the EU to impose retaliatory measures
if the US Government fails to withdraw the 201-measures on
steel.

Both the European steel industry and their American clients
have been seriously hampered by the "201-measures". Speedy
withdrawal of these measures is therefor in the interest of
both the European and American economies.

The Netherlands will remain vigilant as to the possible
measures:

---The Netherlands has learned that the current practice of
the US as regards the determination of anti-dumping duties
on steel imports is being discussed.

---Such a change would lead to deduction of section 201
and/or countervailing duties from the gross unit price in
order to determine the applicable export price or
constructed export price used in anti-dumping calculations.
Such a practice would be in our view constitute a clear
breach of US obligation under the WTO rules.

---Moreover, protecting the domestic steel industry through
such measures will have a devastating impact on our joint
efforts to reconstruct the steel industry and to create a
free market for steel products.

Sobel