Ivan Yates
Question:11 Mr. Yates asked the Minister for Foreign Affairs the role he and the EU General Affairs Council have had in the banana row with the United States; and if he will make a statement on the matter. [8870/99]
Written Answers. - EU-USA Trade Dispute.
The important matter of EU-USA trade relations is a high priority of the General Affairs Council, which reviews developments in this field on a regular basis. Together with the Commission, which represents the European Union in trade talks with the USA, the Council has been considering how actual or potential differences between the EU and the USA can be prevented from escalating into contentious trade disputes. In my view, the way forward is through intensive consultations between the Commission and the relevant US authorities, in this instance the Office of the US Trade Representative. We believe those consultations should aim to reach agreement on an effective early warning system which would reduce, and ideally eliminate, the serious risks to trade posed by these disputes. The current dispute over bananas is currently before the World Trade Organisation and decisions by that body on the appropriateness of US trade sanctions, and on the compatibility of the EU banana regime with WTO rules, is expected on or around 12 April.
On 3 March the USTR announced its intention to impose punitive 100 per cent tariffs on a list of selected EU products unless the EU amended its banana import regime in a manner acceptable to the USA. The effect of that announcement was to require US importers of those products to post bonds to cover the amount of the threatened duties. The bonds would be called in only if and when the WTO ruled in favour of the USA. The better course would have been for the USA to await the decision of the WTO before determining its position. In common with our EU partners, we are firmly opposed to unilateral action by any member state of the WTO. The EU is committed to working within existing WTO structures and procedures. The impact of the USTR decision on overall EU trade could amount to approximately $500 million. The total value of targeted Irish exports is of the order of £2 million.
The Government's concerns about the USTR decision of 3 March have been taken up directly with the US authorities, at ministerial and senior official levels, and the USA is fully aware of our views on this dispute. We will, as circumstances warrant, continue to raise our concerns with the USA. The General Affairs Council will keep this matter under careful review, in close consultation with the Commission.
Other questions on the EU-USA bananas dispute were replied to in the House, in writing, on 9 and 16 February and on 24 March 1999.