WTO rules against trade law, Byrd Amendment. (Washington Alert).

In mid-January, the World Trade Organization (WTO) ruled against a trade provision known as the Byrd Amendment. The international body stated that the U.S. anti-dumping statute violated global trade rules by allowing a portion of the tariffs collected on imports to be distributed to U.S. companies. Under the Byrd Amendment (a law passed by Congress), antidumping duties are paid directly to U.S. companies harmed by trade practices, instead of to the U.S. Treasury.

Each year, the U.S. Customs Service collects nearly $2 billion in tariffs. This year, through the Byrd Amendment, more than $300 million is being provided to various companies. Several foundries qualified for these funds because they participated in legal actions to prove that other nations violated U.S. antidumping laws.

While congressional lawmakers and the business community are disappointed with the WTO's judgment, they note that the decision does not affect the ability to use U.S. anti-dumping or countervailing duty laws. The Office of the U.S. Trade Representative is reviewing the WTO's report to assess the best compliance options and will work with Congress.