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March 15, 2002 | 1300 IST
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EU leaders back action against US steel through WTO

European Union leaders support collective action against US steel tariffs through the World Trade Organisation, a draft communique from their two-day summit showed on Saturday.

"The European Council has taken note with great concern of the safeguard measures introduced by the U.S. in the steel sector which are not in conformity with WTO rules," the communique said.

"It fully supports the Commission's intention of pursuing consultations under WTO agreements and of initiating a procedure for possible Community safeguard measures," it said.

European Union officials made clear on Friday the bloc would seek compensation for US President George W Bush's steel tariffs when the two powers meet next Tuesday.

The EU expressed its intention to seek compensation in a letter from its ambassador to the WTO, Carlo Trojan, to his US counterpart in Geneva, Linnet Deily -- who declared last week that compensation was not on the US agenda.

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