Japan mulls action against U.S. steel ruling

Japan mulls action against U.S. steel ruling

TOKYO (AFP): The Japanese government and steel industry representatives said Saturday they were considering counter- actions against a U.S. decision to slap punitive duties on imports of cheap Japanese hot-rolled steel.

Nippon Steel Corp., the country's top steelmaker, said it might press the government to appeal the ruling before the disputes panel at the World Trade Organization (WTO).

The trade ministry said it would scrutinize the U.S. decision for any irregularity.

The U.S. International Trade Commission (ITC), a federal agency that monitors foreign compliance with U.S. trade law, ruled on Friday that unfairly underpriced Japanese hot-rolled steel imports harm the U.S. steel industry.

As a result, the U.S. Customs Department will require importers of steel from Japan to pay cash deposits equal to "dumping" margins of between 17.86 and 67.14 percent, which have been set by the Commerce Department.

"We'd like to examine carefully whether the ITC's ruling was appropriate or not," the ministry of international trade and industry said, adding the reason for the U.S. decision was unclear.

The ministry may appeal to the world trade body if the U.S. agency is found to have made an arbitrary move against WTO rules in the decision-making process, the Sankei Shimbun said.

The ITC's decision was the final step in a complaint filed by the U.S. steel industry in September 1998.

Nippon Steel called the ruling "extremely regrettable."

"We'd like to consider necessary measures, including requesting the Japanese government to bring the case to the World Trade Organization, let alone the U.S. Court of International Trade," the company said in a statement.

It added that it was "difficult to understand what kind of reason has led to such a decision."

According to the economic daily Nihon Keizai, Nippon Steel accused the U.S. agency of bowing to political pressure from the U.S. steel industry.

It said ITC had "shortened the duration of its investigation into the case and taken other extraordinary procedures."

International Trade and Industry Minister Kaoru Yosano was reported to have complained about a series of U.S. anti-dumping charges on imports of various kinds of steel from Japan.

Yosano handed a letter to U.S. Ambassador to Japan Thomas Foley late Friday, warning that the U.S. moves could lead to "protectionism," the Jiji Press news agency said.