Published
May 1, 2013
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Europe hikes up taxes on American jeans

Published
May 1, 2013

Brussels has decided to implement the sanctions authorized by the WTO against the United States. As of May 1, the tax on imported U.S. cotton jeans for women and girls will rise from 12 to 38%.

The backstory to this decision is the "Byrd Amendment," passed by the United States in 2006. The bill offered financial support to U.S. manufacturers whose exports were on the decline. The World Trade Organization ultimately decided this law violated its anti-dumping regulations.

"The immediate issue for U.S. jeans manufacturers affected by this action is to figure out how to preserve their EU export business through this crisis," said Tom Travis of law firm Sandler, Travis & Rosenberg. "Now, just as this traditionally American manufacturing sector is making its way back to home-grown profitability, the industry is facing a significant blow to an important and growing export market."

The firm also mentioned the popularity of American jeans among European women who may soon find them unaffordable due to price increases caused by the taxes. In 2012, U.S. jeans affected by the duty represented $30.3 billion of goods exported to Europe, according to Washington.

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