EU backs sanctions in steel row

LUXEMBOURG -- Ministers of the 15-nation European Union gave their initial backing to plans to impose tariffs of about $300 million on U.S. goods in a trans-Atlantic row over steel.

Formal approval is expected later this week for duties on some steel products, fruit juices and textiles from the U.S. after President George W. Bush in March slapped duties of up to 30 percent on steel imports.

"There is general support for the Commission position, which will be formally adopted later this week," one EU diplomat told Reuters. A formal agreement is expected at a meeting of Justice and Home Affairs Ministers on June 13.

The EU had deferred immediate action to allow the U.S. time to compromise on protectionist measures intended to help the U.S. domestic market.

The steel row -- which has set the U.S. against most other producer countries -- has prompted accusations that the Bush administration is trying to serve its own domestic political aims.

The EU and several other countries including Brazil, Norway and Switzerland argue that the tariffs contravene World Trade Organization pacts.

Last week, the WTO agreed to a request from the EU to investigate whether the U.S. tariffs violate international trade agreements. The U.S. insists the measures imposed in March are in line with WTO rules and says it will defend its case vigorously.