Written Answers. - Trade Disputes.
David Stanton
Question:
99
Mr. Stanton
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
if she will report on the trade disputes which exist between the EU and the United States; the impact these disputes will have on Irish companies; if she will give details in this regard; the action, if any, she will take regarding the issue; and if she will make a statement on the matter.
[12453/99]
On 6 April 1999, a WTO panel ruled that the EU revised banana import regime is non-WTO compatible. The panel assessed the damage to US interests at $191 million, which is less than half the amount of sanctions threatened by the US. On 9 April, the US published a revised hit list of European products to reflect the panel's findings, which would be subject to 100 per cent tariffs.
My Department and I are monitoring the impact of these sanctions on Irish exporters. Some products of importance to Irish exporters which featured on the US preliminary list, including greeting cards, chandeliers and pigmeat, are now no longer affected, and therefore, the impact, if any, of the sanctions has been considerably lessened.
The EU has until 13 May 1999 to comply with a WTO ruling that its ban on hormone treated US beef is not scientifically based. The EU ban was introduced in 1989 on consumer health grounds and extends to live animals and meat to which any of six hormones have been administered. The EU is currently conducting further scientific studies to assess the health risks attached to use of these hormones. However these studies will not be completed by 13 May.
On 22 March, the US published a preliminary list of products which would be subject to 100 per cent tariffs if the EU does not comply with the 13 May deadline, or in the absence of an interim solution being found. It is calculated that US action, on the basis of this preliminary list, would affect an estimated $900 million worth of EU exports annually.
Irish exports affected could be of the order of £14.6 million per annum spread across a range of products, including beef, pigmeat, poultry meat, cereals, cheese, tomatoes, chocolate, confectionery, jams, mineral waters and adhesives. It must be stressed that the US list is a preliminary one and if the US decides to proceed with these sanctions, it would be required under WTO rules to get WTO authorisation. It would then be open to the EU to seek arbitration on the amount. It is very likely therefore that any final list of products would differ substantially from the current list. I am well aware, however, that for exporters a loss of potential US markets for their products would represent a serious strain on their resources. It is for this reason that every effort needs to be made to avoid any trade sanctions although the threat of such sanctions remains very real.
There are ongoing discussions within the EU and also between the EU Commission and the US, with a view to resolving the disputes. Ireland is very active in these discussions. We support a WTO compatible resolution of the bananas dispute, which would have regard to our trading interests in bananas. We also hope that an agreement can be negotiated with the US on the beef hormones issue before sanctions are introduced. Such an agreement could entail the negotiation of temporary compensation measures as an alternative to the proposed US sanctions.
