The Chamber of Commerce for the Import and Export of Metals, Minerals and Chemicals is organizing Chinese companies to apply for exemption from US steel tariffs for some of their products, said Liu Danyang, an official with the Ministry of Foreign Trade and Economic Cooperation (MOFTEC).

Liu said MOFTEC is studying the list of 61 steel products that the United States has announced is exempt from its controversial tariffs on steel imports.

These 61 products were excluded because they are not sufficiently available from US producers and because those products would not undermine the effectiveness of the American safeguard on steel products, said a written statement from the US Department of Commerce.

The 61 exemptions are the first set of exclusions with more to be announced this week, a US trade official said.

Liu expected some Chinese products will be exempt but said the amount will be tiny. The 61 exemptions amount to about 1 per cent of the steel covered by the tariffs.

An official with MOFTEC's world trade department confirmed that China will renew its request on June 24 for a WTO panel to examine its charge that the US steel tariffs break international trade rules.

The meeting was originally scheduled earlier but delayed until June 24 because Norway and Switzerland will file similar requests at that time, said the MOFTEC official, who did not disclose his name.

The United States used its right under WTO rules and on Friday blocked China's first request to set up an independent panel of experts to rule on the legality of the steel measures.

The United States will not be able to oppose the second request and the three-member panel must be established automatically.

China follows in the footsteps of the European Union, South Korea and Japan to lodge the request, and others are preparing to follow suit in what is shaping up to be one of the trade body's most bitter conflicts.

The dispute centres on Washington's three-year introduction of "safeguards" on some imported steel products to help its flagging steel industry.

The measures, which took effect on March 20, takes the form of increased duties of between 8 and 30 per cent and tariff rate quotas.

Trade partners with the United States from Europe, Latin America and Asia have pressed for the removal of the measure, slamming the action as protectionist and in violation of US commitments to WTO rules.

The EU, Japan, South Korea and China argue that US industries were not seriously depressed or threatened by imports.

China also argues that as a developing country, its imports of certain steel products should be excluded from the US measure.

The EU on Monday secured the establishment of a panel, while South Korea and Japan plan to ask for a second time on June 14, when Norway and Switzerland will each also lodge an initial request.

Brazil and New Zealand are at an earlier stage in the procedure that could also lead to panel requests.

(China Daily June 11, 2002)