European Commission rejects US Steel rejection

The European Commission responded sharply to US steel firms' rejection of a pact limiting European steel sales in the United States. The commission said the pact remained valid unless withdrawn by the US government.

President Reagan himself had pronounced the accord equitable to both sides, and his administration undertook to recommend its acceptance to the American steel industry. US Steel Corporation, representing the industry, rejected the pact, a move having an apparently severe effect on months of diplomatic efforts to avoid a trade war.