Brasília – The World Trade Organization has authorized Brazil to retaliate against the United States because of what is known as the Byrd Amendment. That piece of legislation makes it possible for US producers to receive part of assessed and collected dumping duties in cases where they bring dumping charges against foreign exporters.

The Byrd Amendment has been in effect since 2000. In 2002 the US collected dumping duties totalling US$330 million. In 2003, it is estimated that Brazil paid US$1.5 million in dumping duties just on steel exports to the US. The WTO ruled the amendment illegal in January 2003.

It is not customary to immediately use the right to commercial retaliation in these cases. The right is used to pressure for remedial action - which in this case would be the revocation of the Byrd Amendment, something that is expected to occur shortly.

Agência Brasil
Reporter: Bruno Bocchini
Translator: Allen Bennett
11/30/2004