WTO Finds U.S. Section 301 Is 'Consistent'

January 31, 2000

The World Trade Organization Dispute Settlement Body has found Section 301 of the U.S. Trade Act of 1974 is consistent with U.S. obligations under the WTO. The European Union had filed a complaint, claiming Section 301 was inconsistent with the WTO.

"Section 301 has been and will remain essential to our efforts to enforce our international trade rights," said U.S. Trade Representative Charlene Barshefsky. Section 301 is the tool the United States uses to claim its international trade rights. The EU claimed Section 301 violated WTO rules that deal with whether another country has violated its WTO rights and any actions taken in response.

The EU brought the claim in late 1998. The complaint did not center on any particular Section 301 case but concerned the time frames in which the United States could take action under Section 301.

WTO's settlement body upheld a dispute settlement panel determination that rejected those claims and found that USTR has adequate discretion to comply with WTO rules in all cases.