US trade panel rules against EU uranium imports

["Sandy Perle" <sandyfl@earthlink.net>]

US trade panel rules against EU uranium imports

WASHINGTON, Jan 22 (Reuters) - In a case that could further 
strain trade relations between the United States and the European 
Union, a U.S. trade panel on Monday issued a preliminary ruling 
against uranium imports from France, Germany, the Netherlands 
and Britain. 

The U.S. International Trade Commission (ITC) voted 4-0, with two 
commissioners abstaining, that low enriched uranium imports from 
the four EU member states threatened USEC Inc.,  the only 
American producer of enriched uranium. 

The product is used as fuel in nuclear power-generating plants. 
USEC is a former U.S government-owned corporation that was 
privatized in July 1998. 

The preliminary decision opened the door for the United States to 
impose anti-dumping and countervailing duties on the uranium 
imports later this year. 

In a case filed in December 2000 with the ITC and the U.S. 
Commerce Department, USEC accused its two European 
competitors, Eurodif S.A. and Urenco Ltd., of unfairly selling 
uranium in the U.S. market for less than their cost of production 
and benefiting from government subsidies. 

USEC also accused Eurodif, which is controlled by the French 
government, through its sales agent Cogema of selling uranium for 
lower prices in the United States than at home. Urenco is a British-
Dutch-German consortium. 

"These unfair trade practices must be stopped for the good of U.S. 
national and energy security and the nuclear fuel cycle," USEC 
President William Timbers said in a statement after the vote. 

The ITC finding clears the way for the Commerce Department to 
continue its investigation to determine if anti-dumping and 
countervailing duties are warranted. A negative ITC vote would have 
stopped the probe. 

Commerce is expected to issue a preliminary decision in March in 
the dumping probe and in May in its investigation of  government 
subsidies. 

Following those decisions, U.S. importers could be required to post 
a bond to cover potential duties that would go into effect if the ITC 
makes a final injury ruling against the imports later this year. 

"We're disappointed that the ITC has decided to continue the 
investigations," an EU official here said. 

The EU argues anti-dumping and countervailing duties are 
inappropriate in the case because the EU firms only provide 
enrichment services, not the good itself.  

U.S. utilities deliver natural uranium to Eurodif and Urenco, which 
convert it into low-enriched uranium. 

Anti-dumping and countervailing duties are appropriate for goods, 
not services, the EU says. 

The case is the latest in a long list of cross-Atlantic trade disputes 
that includes fights over EU beef and banana import restrictions 
and U.S. tax breaks for exporters. 

Those disputes have stymied efforts in Brussels and Washington 
to agree on a common agenda for new multilateral trade 
negotiations under the World Trade Organization. 
----------------------------------------------------------------------------------
Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
Director, Technical				Extension 2306 				     	
ICN Worldwide Dosimetry Service		Fax:(714) 668-3149 	                   		    
ICN Pharmaceuticals, Inc.			E-Mail: sandyfl@earthlink.net 				                           
ICN Plaza, 3300 Hyland Avenue  		E-Mail: sperle@icnpharm.com          	          
Costa Mesa, CA 92626

Personal Website: http://sandyfl.nukeworker.net
ICN Worldwide Dosimetry Website: http://www.dosimetry.com
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