Sutton welcomes WTO steel ruling

1.30pm

Trade Minister Jim Sutton today welcomed a World Trade Organisations (WTO) decision that hefty United States steel import duties violate global trade agreements.

The decision cleared the way for the European Union and Japan to retaliate with as much as US$2.3 billion ($3.7 billion) in sanctions.

Mr Sutton said while New Zealand's steel industry was small by international standards, it made an important contribution to the economy.

"New Zealand, along with the other countries involved, would encourage the US to remove the safeguards without delay," he said.

The ruling was the latest in a challenge brought by New Zealand, Brazil, China, Japan, Korea, the European Community, Norway and Switzerland against US measures imposed on a wide range of imported steel products, including a 30 per cent tariff on New Zealand products.

Mr Sutton said he believed the US would uphold the decision because they respected due process and the law.

"We've never had any problem with them before. They've always exhausted all means of appeal and then complied when they've lost in the past and we expect them to do that again," he said.

- NZPA