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[00:00.59]The European Union has drafted a list of US products to be hit with import taxes in retaliation
[00:09.11]for tariffs the United States has imposed on European steel.
[00:14.38]EU member governments will review the list before the EU submits it to the World Trade Organization,
[00:21.86]which arbitrates international trade disputes.
[00:25.50]EU officials will not say which American products will be hit by the EU sanctions.
[00:31.63]But diplomats monitoring the most recent trans-Atlantic trade dispute say they include textiles and steel products.
[00:40.58]Earlier this month, the Bush administration imposed tariffs of up to 30 percent on some steel imports,
[00:48.37]including European products.
[00:50.95]The EU has appealed to the World Trade Organization to get those duties overturned.
[00:57.17]But a WTO decision on the matter could take up to a year or more.
[01:02.66]EU officials say that, under WTO rules, the EU has the right to impose retaliatory measures in June.
[01:11.93]But they say the United States can avoid the EU's possible countermeasures
[01:17.19]if it pays more than two billion dollars in compensation to the EU for imposing the steel tariffs in the first place.
[01:25.57]The officials say Washington could also escape retaliation by lowering US import duties on other EU products.
[01:34.67]The Bush administration says it will not pay compensation.