U.S. Limits Imports of Some EEC Steel

The United States said Wednesday that European Economic Community steel pipe and tube products must be licensed by the EEC before they can enter this country.

Desiree Tucker, a spokeswoman for the U.S. Trade Office, also said the United States will limit imports of EEC pipe and tube to 5.9% of the United States’ 9-million-ton market pending final agreement on a higher limit.

She said pipe and tube products sitting in dockside warehouses here as a result of a U.S. embargo imposed in November will not be released until the licenses are obtained.

Tucker also said the United States intends to count the more than 100,000 tons of embargoed steel goods against the new 1985 quota. The 5.9% limit works out to about 531,000 tons.

U.S. officials who asked not to be identified said the two sides have agreed in principle to raise the limit to 7.6%, or about 684,000 tons, but final details, including disposition of the embargoed steel and how long the limits would be in effect, are holding up a final pact.

The EEC says the embargoed goods were shipped last year and should not be counted against the 1985 quota.

The United States imposed the embargo because of an import surge that pushed the European share of the U.S. pipe and tube market to more than 14%.

The United States accused the Common Market nations of violating a 1982 exchange of letters limiting the EEC to 5.9% of the U.S. pipe and tube market. The EEC said the letters, written at the same time the two sides reached an accord limiting other steel shipments, did not constitute a binding agreement.

The embargoed goods were to be released on Jan. 1, but the new licensing rules will delay their entry into the U.S. market. The delay will help the EEC enforce any quota accord finally concluded.

Sources familiar with the talks also said the licensing rule is intended to help the EEC allocate pipe and tube exports among its member nations.