Mar 15, 1984

COUNCIL ACCEPTS PANEL REPORT ON NICARAGUAN SUGAR.

GENEVA, MARCH 13 (IFDA/CHAKRAVARTHI RAGHAVAN) – The GATT Council Tuesday accepted the report of its panel that the U.S. restrictions on Nicaraguan sugar imports were contrary to GATT, and the U.S. should immediately restore Nicaragua’s sugar quota.-

The United States, while not opposing the adoption of the panel report, made clear that a settlement of the issue could only be in the context of the settlement of its "broader dispute" with Nicaragua.-

The chairman of the GATT Council, Amb. Felipe Jaramillo of Colombia, said that Nicaragua would remain in contact with him "in order to follow up the evolution of the situation".-

Earlier, in seeking the support of the Council on the report, Nicaragua said there ought to be consultations in GATT on the whole question of U.S. sugar import regime.-

Nicaragua had contended before the panel that apart from the illegality of the restrictions (reducing Nicaragua’s quota from 58.000 tons to 6.000 tons), the import regime itself was not legal.-

The panel had not gone into this on the ground that this was not covered by its terms of reference.-

All the speakers in the Council Tuesday supported Nicaragua, and there was none in favour of the U.S.A.-

The supporters were Venezuela, Argentina, Australia, Brazil, Cuba, Colombia, Poland, India, Norway, Uruguay, Dominican Republic, Hong Kong, Hungary, Portugal, Jamaica, Peru, Austria, Yugoslavia, Rumania, Switzerland, Chile, Egypt, Singapore, Nigeria, Mexico, Canada, Trinidad and Tobago, Seneghal and Zaire.-

The EEC did not speak.-