US doles out more WTO-illegal payments to companies

[Khephra]

WASHINGTON (Reuters) - The Bush administration is to make $150 million in payments to U.S. steelmakers and other firms over the next two weeks under a program declared illegal by the World Trade Organization, a U.S. Customs official said Tuesday.

The "Byrd amendment" payouts could set the stage for the European Union, Japan and many other trading partners to retaliate on U.S. exports, just as President Bush is expected to lift steel tariffs in the face of another retaliation threat from abroad.

Steel industry protection, with strong support in steel producing states such as Pennsylvania, is a political hot potato for Bush as he faces re-election.

Jeff Laxague, who administers the program for Customs, told Reuters another $90 million in the Byrd amendment payments was on hold pending the outcome of a court case over which companies are entitled to some of the funds.

more..........

http://www.forbes.com/markets/newswire/2003/12/02/rtr1167076.html

[Don_G]

1. Back Door Payment?

Sounds like he's dropping the steel tarriffs and making a under the table payment to the steelmakers to make up for it.