U .S. trade practices were slapped again recently when the World Trade Organization imposed penalties on a wide range of U.S. exports. The decision targets the Byrd Amendment, a law that was passed to protect U.S. steel makers harmed by cheaper imports of foreign steel. The WTO had already determined that the amendment was illegal, so its decision was expected.
The first priority of the United States should now be to come into compliance with the WTO ruling. Escalation of tariffs must be avoided.
The Byrd Amendment is named after Sen. Robert Byrd, who represents West Virginia, a traditional steel-producing state. West Virginia, as well as other U.S. steel-producing regions, has been hard hit in recent years by imports of foreign steel, which costs considerably less than domestically produced steel. In 2000, he introduced legislation designed to protect those mills. His bill imposed tariffs on products that the U.S. government decided were being sold in the U.S. below market prices.