On May 12, 2006, Congress voted to repeal the benefits granted to US companies under the 2000 Byrd Amendment. The EU responded to the repeal by lifting the retaliatory measures in place and withdrew the reintroduction of sanctions previously scheduled for May 16, 2006.
The Byrd Amendment awarded US companies, threatened by cheaper foreign imports, 50% of the duties charged if the US Trade Commission found unfair "dumping." The WTO, finding that these tax breaks were incompatible with the Jobs Act, authorized the EU to enforce retaliatory duties on US imports. For some products, the duties amounted to only a few percent, but in some cases like the 15% applied to 2005 steel products shipped to Japan or the 30% added to infant formula shipped to Mexico in 2005, the duties seriously hurt US companies. As these charges become effective during 2005, Congress took note and ultimately repealed the Byrd Amendment.
For more information, please contact Lee Ford Hunter at lhunter@kmclaw.com or at 801.328.3600.