WTO: US has 6 months to fix Mexican steel charges

The United States has six months to bring its taxes on imports of Mexican steel in line with international commerce rules, the World Trade Organization said Friday.

The ruling follows a WTO appellate decision in April that found against Washington for imposing excessive dumping fees on stainless steel from Mexico.

Dumping occurs when foreign producers export products at below the market price — usually because the exports have been subsidized or in an attempt to corner the market. Under WTO rules, countries are allowed to impose additional import duties to counter dumping.

The trade body has ruled against the U.S. — in disputes with the 27-nation European Union, Canada, Japan and others — for how it determines what antidumping fees to apply. WTO panels have consistently found that the U.S. overestimates how far below market value imports are arriving, and as a result penalizes them with dumping duties that are too high.

After April 30, 2009, Mexico can ask the WTO to launch a compliance investigation if it feels the United States is still breaking the rules. Punitive sanctions can result from WTO cases — but usually after years of litigation.

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