US and Europe on Brink of Trade War

[kskiska]

WTO says Bush's steel tariffs break rules · Brussels threatens to retaliate unless Washington backs down

The European Union and the United States were teetering on the brink of a transatlantic trade war last night after Brussels threatened a $2.2bn package of sanctions unless Washington scrapped steel tariffs ruled illegal by the World Trade Organisation yesterday.

(snip)

Within minutes, the European commission said it would seek to hit pre-selected US products with retaliatory tariffs worth up to $2.2bn (£1.3bn) a year unless Washington dismantled its offending steel tariffs within five days.

"If and when the US does not comply with this ruling, the EU will impose counter measures," said Arancha Gonzalez, a spokeswoman for EU trade commissioner Pascal Lamy.

She said the sanctions, if used, would hit US steel products, textiles and fruit and vegetables.

more…
http://www.guardian.co.uk/usa/story/0,12271,996889,00.html

[I AM SPARTACUS]

1. Smirko W. AmBush says..."Bring 'Em On..."...

[tlb]

8. I can't recall a time when the US and Europe WEREN'T on the brink

of a trade war. This is business as usual, whether it's steel, banannas, electronics, or what have you.

[bvar22]

2. Oddly enough, the steel and lumber tariffs...

...are the ONLY things bush* has done that I agree with. These could cause enough in-fighting to break the global monetary stranglehold of the WTO and NAFTA.
I hope...I hope...I hope....I hope....

[madrchsod]

3. i got heat

this morning for backing the steel tariffs..i`m a former steelworker and drop forge worker and i have seen what happens when cheap steel floods our market. the steel industry has poured millions into upgrades in the last few years and must be able to get their investment back. oh well another hit for the american worker...

[Maple]

6. Trust me on this

You don't want to face a job market without NAFTA and WTO agreements in place.

[Nambe]

4. It is more like the US and the World. Ask Boeing.

We are dealing weapons and oil while the rest of the world is dealing with reality. I haven't heard Russia crying for US money lately. China is making trade deals left right and center while we make war. 'There's a bad moon rising'.

[Gloria]

5. It's interesting that the US has been easing the tariffs bit by bit with

Japan....I posted several articles on this about 4-5 months ago in the WMW....final agreement on the tariffs was supposed to kick in around now, I think. However, the Bushies were dropping categories under tariff left and right, basically gutting them with regard to Japan.

[jamesinca]

7. Maybe this is why the Japanese economy seems to be coming

around. Their manufacturing has picked up in the last few weeks. There is even talk of them being able to get out of the economic doldrums they have been in for the last decade. Japan has done this a few times in the last ten years, but this time seems different from what I have been reading.

If this is the case with Japan, imagine what more tariffs will do to the weak U.S. economy now. Tariffs may be good for U.S. steel in the U.S. but what will the total cost be? How many things will be sacraficed because of this move? If we come out of this with only the steel industry in tact, was it worth it. Is it for the greater good? Will more be helped than harmed?

A previous post stated that this may help by breaking the stranglehold of the WTO. If it ends there then good. I can not imagine the Bush administration doing it for a noble cause like helping America. Consider the source of the tariff on steel. I am willing to bet that Bush is looking to 1) get a donation from, or already has gotten one from the industry. 2) Has friends in the business, or is personally involved. 3) Is trying to use this as a campaign slogan that will run counter to cutting the overtime. No overtime pay with his plan, but twice the number of hours at the factory, so it all pays the same at years end. 4) Has no brains in his head. 5) He is up to something Ihave not considered or can not find the words to express it.

edited for very bad spelling, minor spelling errors were left in tact though. Same for grammer and word spacing.