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US asks GATT to set soya penalties
GENEVA. Sept 25: The United States has decided to ask the General Agreement on Tariff* and Trade (GATT) to set penalties for the European Community (EC) for subsidising It* producers of oil-bearing crop*, officials at GATT said here on Thursday, report* AFP.
The compensation would apply to countries damaged by the EC subsidies, they said.
Source* at GATT and In diplomatic circles said the US decision meant that Washington had decided to continue trading carefully before unleashing tough counter-measure*.
The United States has threatened since spring to take retaliatory action against the 12 member* of the EC in what has become known as the "Soya War"
The EC has Aimed that it would ask GATT for authority to take measures against the retaliatory action if the United States acted unilaterally.
Many diplomats here hold that an open trade war be tween the two biggest agricul tural powers could only undermine chances that negotiations on the so-called GATT Uruguay Round might be resumed."
These long-running negotiations on a massive programme to reduce tariff barriers around the world are dead locked, mainly because of disagreement over subsidies for agriculture.
Senior officials from the United States, the EC. Japan and Canada met in Geneva on Wednesday to assess the situa-
tion pf the Uruguay Round, diplomatic sources here said.
They repeated their desire to sec the talks emerge from deadlock but Bid hot refer to any possible concessions.
The GATT and diplomatic sources said that the US decision to ask the GATT to set soya penalties also implied that the United States had decided, at least for the moment, to respect GATT regulations which forbid a country from applying reprisals unilaterally.
The US request is to be examined on Tuesday by the GATT council, which will have to study several trade disputes and Is also expected to approve the beginning of the process enabling Taiwan to become a member.
EC lacks single market structure
Reuter from Brussels adds: A lack of Integrated European community-wide transport, energy and telecommunications networks could spell failure for the EC's single market. EC Transport Commissioner Karel Van Miert said.
Van Miert said the barrier-free market, due to come into force on January 1. could not work properly unless the EC acted to plug gaps in Its motorway and rail networks, and bring energy distribution and telecommunications systems up to standard.
The existence of efficient networks covering all of community territory constitutes an essential clement in ensuring competitiveness for business," he told a conference.