Nov 6, 1984

EEC COMPLAINS OVER NEW U.S. WINE LAW.

GENEVA, NOVEMBER 2 (IFDA/CHAKRAVARTHI RAGHAVAN) – The Subsidies committee in GATT is to hold a special meeting soon to examine the complaints of the European Community over the new U.S. omnibus trade law provisions relating to wine imports.-

The Committee administers the subsidies code under the Tokyo Round agreements.-

The European Community complaint over the new U.S. law was presented to the Committee at its meeting on Thursday.-

The Community contended that the possibility given under the new U.S. law to U.S. grape growers to start anti-dumping and countervailing duty proceedings against imports of wine "constituted an unprecedented and flagrant departure from established international rules".-

This was a reference to article 2 of the code, which requires that investigations "shall normally be initiated upon a written request by or on behalf of the industry affected".-

There is no provision for the raw material producers supplying the industry to initiate such actions.-

The Community said that the U.S. Congress had deliberately set aside the international obligations of the U.S. in order to enable the grape growers to recommence proceedings against Community wine exports, after the previous petition had been turned down by the U.S. authorities, precisely on the ground that the complaint was not in conformity with the U.S. obligations.-

According to Committee sources the U.S. tried to resist the idea of a special meeting, sought by the Community, to discuss the new U.S. law.-

The U.S. delegate would appear to have argued that the president had just signed the law, and the U.S. delegation itself did not yet have a copy.-

In the U.S. view, there was no particular hurry to examine the law now, and this should be done only as part of the Committee’s regular examination of all such laws.-

The chairman of the Committee, Mr. H. S. Puri of India, is however reported to have pointed out that under article 16 (1) of the Subsidies Code, any signatory could ask for a special meeting.-

The chairman’s view was supported by Australia and Canada, and the Committee decided to hold a special meeting shortly.-

While the Community itself had sought a meeting on November 16, the Committee asked the chairman to consult with other members over the next few days and fix a date for the meeting.-