Why was the Byrd Amendment found to violate international trade law?

The Byrd Amendment was found to violate international trade law primarily because it established a mechanism for redistributing anti-dumping duties collected on imports to domestic companies that were harmed by those imports. This practice was viewed as contrary to World Trade Organization (WTO) principles, which discourage the use of anti-dumping measures as a means of providing direct financial support to domestic industries.

By allowing these duties to be allocated directly to specific companies, the Byrd Amendment created an incentive for U.S. firms to lobby for more anti-dumping actions, rather than encouraging fair competition and market discipline. This system undermined the WTO's intended purpose of ensuring equitable trade practices among member nations, as it could lead to trade distortions and misuse of anti-dumping rules.

The other options reflect issues related to international trade law, but they do not capture the specific breach related to the financial redistribution of anti-dumping duties outlined in the Byrd Amendment.