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22, May 2005
The EU and Canada have imposed measures against the US in retaliation against a US trade act judged to be illegal by the WTO (World Trade Organisation). Following the US’s failure to repeal its Continued Dumping and Subsidy Offset Act (the Byrd Amendment), the EU will impose additional duty of 15% from 1 May on a range of imports from the US, including textile, machinery and agricultural products, and paper. The EU said the level of sanctions would be revised annually and the goods named so far were an initial list. Retaliatory duties could rise to more than a year from the initial Euro20m, it added. Canada is to announce similar measures and other countries, including Brazil, Chile, India, Japan, Korea and Mexico are also expected to follow suit. But the EU has suspended, “with the aim of elimination”, retrospectively from 1 January 2005 textile and clothing quotas imposed on Vietnam as part of a wider market access agreement.

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