Decisions of the Appellate Body of the World Trade Organization

United States-Imposition of Countervailing Duties on Certain Hot-Rolled Lead and Bismuth Carbon Steel Products Originating in the United Kingdom

2. Facts

This complaint was brought with respect to countervailing duties assessed by the US against certain hot-rolled and bismuth carbon steel products (`leaded bars') from the UK. The alleged subsidies were comprised of equity infusions from the UK government to British Steel Corporation, a state-owned company, between 1977 and 1986. In 1986, BSC transferred the assets that produced leaded bars to a joint venture company in arm's length negotiations, and in return for an equity share in the joint venture. In 1988, the successor to BSC, British Steel plc, was privatized through a sale of shares to the public. The US Department of Commerce held that the sale of shares in this privatization was arm's length, for fair market value and consistent with commercial considerations.

The US originally imposed the countervailing duties in 1993. The UK claims relate to countervailing duties applied in 1995, 1996 and 1997. The US imposed countervailing duties on the basis that a certain proportion of the subsidies granted to BSC had passed through to the joint venture and to BSC's successor.

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