US gets a rough ride from WTO

THE US faces up to £1.3 billion in European Union trade sanctions after a World Trade Organisation appeals panel ruled that US tariffs on imported steel were illegal.

The WTO’s announcement puts fresh pressure on Washington to withdraw import duties on steel, but White House spokesman Scott McClellan said: "We disagree with the overall WTO report - we are going to study it, look at its implications and go from there."

A range of US exports worth around £1.3bn a year - including Harley Davidson motorcycles, citrus fruits and textiles - could now be targeted with sanctions by the European Commission by next month.

The hit list is said to have been calculated to inflict maximum pain on states whose support will be crucial to President Bush’s re-election campaign next year.

The EU, whose steel industry has undergone a painful reorganisation, had joined forces with Brazil, Japan, and other exporters to complain to the WTO about the US tariffs, imposed 21 months ago.