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Textiles On EU Retaliations List

The European Union (EU) has served notice that it plans to levy punitive tariffs on a group of textile and apparel products in retaliation against U.S. tax subsidies on some of its exports. The World Trade Organization (WTO) has authorized the EU to impost punitive tariffs on some $4 billion of U.S. products as compensation for what it has ruled are illegal tax subsidies. The punitive tariffs are likely to be as much as 100%. According to a summary prepared by the American Textile Manufacturers Institute (ATMI), the list of targeted products includes: raw wool, processed wool, wool yarn and some woven wool fabrics; raw and processed cotton, cotton sewing thread and nearly all cotton yarns and cotton woven fabric; man-made filament sewing thread and a variety of textured yarns; nearly all floor coverings; and a wide range of made-up textiles.Since the list is not yet final, textile companies have an opportunity to ask for products to be removed, and ATMI is inviting its members to submit comments to the European Commission. September 2002




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