Forum Archive Index - March 2002

["DR" <kat47@bigfoot.com>]

Ananova :

Australia negotiates exemptions from new US steel tariffs

Australia has negotiated an exemption to most of the new steel tariffs announced by the United States.

Prime Minister John Howard says the exemptions mean that 85% of Australian steel exports to the United States will not be affected by the new tariffs.

It is not immediately clear if other countries will also benefit.

Mr Howard said: "Understandings have been reached with the United States administration over the weekend which will allow Australian exports of hot rolled steel products to the United States West Coast to proceed."

George W Bush announced the tariffs of up to 30% for three years on a wide range of steel products in a widely perceived bid to protect American steel industry jobs in states vital to his Republican Party in forthcoming congressional elections.

The move drew sharp criticism from many steel-producing nations that fear the tariffs would reduce their steel exports to the United States.

Last week, some prominent industry and political leaders in Australia suggested that if the country were to be negatively affected by the tariffs, then Canberra should review its close security and defence ties with the United States.

Australia has long been a close ally of the United States, and Mr Howard's government was one of the first to offer military support for the war in Afghanistan.

Australia exports about 880,000 tons of steel worth some Aus $450 million (£170 million) to the United States each year.

Story filed: 05:22 Monday 11th March 2002

D.