Continuous Dumping and Subsidy Offset Act (CDSOA) popularly known as The Byrd Amendment has caused one of the most trade distorting effects in its life span of 6 years i.e. 2000-to-2006 to american economy than any good. Though the amendment is repealded now, the disbursements spillovers will continue to complaining U.S. companies for as many years as it takes to collect duty due for alleged dumping of foreign products before October 1 of 2007.
According to WSJ, Senetor Robert Byrd and his supporting collegues are trying to review the BAD bipartisian Act.
The data on Byrd disbursements are staggering; in 2001, the total disbursement was $230 million, in 2002 it was $330 and for 2003 it is estimated at $200 , in 2006 year alone the payout was more than $264 million. As of 2007, some $1.9 billion had been handed out to thousands of supplicants, from bee keepers to steel manufacturers. The lion’s share has gone to big business.
A GAO report found that between 2001 and 2004, more than half of Byrd money went to five companies, and 20% went to just one, an Ohio bearings maker named Timken. In the 2007 rankings of 1,982 payees, Idaho’s Micron semiconductor company won the jackpot, with $37,938,402.
Because the United States has not brought CDSOA into compliance with its WTO obligations, it faces additional tariffs on U.S. exports covering a trade value of up to $134 million based on 2004 CDSOA disbursements. 11 World Trade Organization (WTO) members lodged a complaint over the law at the WTO. Latest action was taken by the Japan by imposing 10% import duty on american ball bearings and tapered roller bearings. EU has already imported similar duties on number of american products.
On April 4, 2005, the EU announced plans to implement limited sanctions on a selection of US goods, charging a 15% levy on U.S. paper, farm goods, textiles and machinery from May 1, 2005. This was in light of the continuing failure of the United States to bring its legislation in conformity with its international obligations. Also, on May 1, Canada imposed a 15% surtax sanction on US imports of cigarettes, oysters and live swine. On September 1, 2005, the Japanese government introduced 15% retaliatory duties on U.S.steel imports.
CDSOA supporters says that It helps U.S. companies compete in the face of continuing unfair trade. However, opponents believe CDSOA
recipients receive a large, unjustified windfall from the U.S. treasury.
While keeping the current crises in minds its right time to americans legislators and industry to analysis the cost and benefits of revieing the bad Byrd Act.
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