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EU delays U.S. trade sanctions

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The EU called on the U.S. to offer broad exemptions from duties  


BRUSSELS, Belgium -- The European Commission has delayed imposing tit-for-tat trade sanctions against the United States until September 30.

European diplomats are considering sanctions on U.S. goods after Washington slapped tariffs, ranging from eight to 30 percent, on steel imports.

To avoid sanctions, the Commission has called on the U.S. to offer European producers broad exemptions from steel duties or provide compensation in the form of lower tariffs on other goods.

The U.S. has given some exclusions, amounting to about 10 percent of the $2.3 billion of EU steel shipments hit by the duties.

European Union diplomats agreed unanimously to postponing any introduction of sanctions on Friday and the decision is expected to be endorsed by EU foreign ministers on Monday.

Peter Carl, trade director in the EU's executive arm, told a news conference: "There was a strong positive signal from the Americans, and we have responded to that. We have decided not to pull the trigger."

EU Trade Commissioner Pascal Lamy added in a statement: "The U.S. have taken useful steps ... there is much more to do."

CNN's European Political Editor Robin Oakley said: "Both sides know that with stock markets everywhere in free fall it is hardly the time to spark an all-out trade war."

Before Friday's meeting Europe was said to be split on the issue with Germany, Britain, the Netherlands, Austria, Finland, Denmark and Ireland opposed to imposing sanctions now.

The EU and several other countries -- including Japan, Brazil, Norway and Switzerland -- believe the U.S. tariffs contravene World Trade Organization regulations.

They have complained to the WTO to get the duties overturned, but a decision from the global trade body is not expected until next year at the earliest.

Nicholas Clegg, who sits on the European Parliament's trade committee, said the EC was damned if it did recommend sanctions and damned if it did not.

He told Reuters: "We are in an invidious position whichever way we jump. If we go for the sanctions then the exemptions will probably be withdrawn and so the modest gains there will be lost.

"But even if we do not go ahead with the sanctions jobs have already been lost, damage has already been done."





 
 
 
 




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