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Washington Outlook Archive

European Retaliation Hits Apparel, But Not Many Textiles

James A. Morrissey, Washington Correspondent

The World Trade Organization has given European Union nations permission to levy punitive tariffs on US products in retaliation to a US subsidy that it has is ruled illegal. A long list of apparel products is targeted for retaliation, but in the textile sector only chief weight cotton/man-made fiber yarn, non-cellulosic filament yarn put up for retail sale, and most floor coverings except carpet tiles are targeted. From March 1, a 5-percent increase has been levied on the targeted products and an additional 1 percent each month will be levied until the US law granting the illegal subsidy is repealed. US textile manufacturers have urged repeal of the legislation in order to avoid the higher retaliatory tariffs, and they are pressing Congress and the White House to act quickly.

March 2004