Byrd Amendment

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The Byrd Amendment , also known as the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA), is a federal law of the United States . The name comes from one of its main authors, the Democratic Senator Robert Byrd of the state of West Virginia . The law reorganized the use of import duties imposed by the US government against dumping . Before the law came into effect, revenue from tariffs became part of the government's annual budget. The law stipulated that this revenue must now be distributed to the US companies that are directly affected by the dumping. Together with the punitive tariffs that should be distributed at the same time against foreign dumping practices, the law should serve as a particularly sharp weapon against unfair international trade practices.

Legislative history

Originally, the Republican US Senator Mike DeWine from Oklahoma introduced the bill to the 106th US Congress in January 1999 with the aim of effectively preventing dumping against US companies through import duties. The proposal failed, however, despite 26 supporters, mainly from states with a high industrial share, in the Senate Finance Committee. However, the US Senator Robert Byrd made a legislative trick for referral to the congress: The Chairman of the Appropriation Committee added these laws extension ( "Amendment") in 2000 at the last minute and without debate an important Appropriations Bill ( Budget Law ) for the 2001, which the Congress did not want to fail altogether and therefore decided in the awareness of the violation of WTO rules. President Bill Clinton signed the bill in October 2000, making it effective, but noted the illegality of the bill and told Congress to get it right as soon as possible, which was not implemented; the law remained in force in its original form.

International response

Global trading partners of the USA accused her of protectionism and disregard for international rules because of this legislation . The European Commission and initially eight individual states - Australia , Brazil , Chile , India , Indonesia , Japan , South Korea and Thailand - lodged a complaint with the World Trade Organization (WTO) in December 2000 ; Canada and Mexico also joined in late 2001 . The European Commission has found that US companies a billion by the government under the Byrd Amendment dollars of anti-dumping duties had received from the proceeds. The WTO declared the Byrd Amendment to be illegal in 2002 and allowed the European Union (EU) and the other plaintiff states to impose fines on the United States of up to 72% of the distributed customs revenue.

On April 4, 2005, the EU announced that, with the approval of the WTO, it would begin with limited sanctions against the United States by imposing a 15 percent import duty on paper, textiles and machinery from the United States from May 1, 2005. Canada also imposed a 15 percent import tax on cigarettes, oysters, and pigs from the United States. On September 1, 2005, the Japanese government finally introduced a 15 percent import tariff on steel from the USA.

Repeal

For years, President George W. Bush sought unsuccessfully for its repeal. After trading partners increased economic pressure on the United States in 2005, Congress overturned the law on October 1, 2007 through votes in late 2005 that took effect in January 2006.

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