12:35 PM Apr 16, 1996

US, ISOLATED, BUT DEFIANT ON CUBA SANCTIONS

Geneva 16 Apr (Chakravarthi Raghavan) -- The United States was isolated Tuesday at the General Council of the World Trade Organization (WTO) over the Helms-Burton law and trade sanctions under it against Cuba, including sanctions against other nations having specified trade or economic relations with Cuba.

But the United States, remained defiant, arguing that those doing business in Cuba using "confiscated property" were furthering the wrongs against former owners and "undermining the interests of the United States".

The US had made a similar statement at the Goods Council where Cuba last month had brought it up, and the statement in virtually the same words were repeated by the US Ambassador to the WTO, Mr. Booth Gardner.

Cuba had inscribed the issue on the agenda of the WTO General Council, and in raising this, the Cuban Representative, Amb. Eumelio Cabalero Rodriguez, repeated his complaints voiced at the Goods Council and said the purpose of the Helms-Burton Act was to intimidate the world business community and prevent it from participating in the ever-widening economic opportunities for foreign investment in Cuba.

In a document circulated to the WTO members, Cuba contended that in carrying out its expropriation and nationalization process (against which one of the provisions of the Helms-Burton law is aimed, by authorizing the former owners to sue the in US courts foreign companies using that property for compensation), the Government of Cuba had strictly abided by the established norms of international law, the Cuba envoy argued. Full compensation had been provided under agreements with all foreign governments excepting the US in whose case a procedure had been established for compensation payments based on Cuban sugar exports to the US. This latter became impossible when the US cancelled the Cuban sugar quotas. As for the property of Cuban nationals, no foreign country could claim jurisdiction in this, and hence could not legislate about it.

Bolivia, speaking for the Rio group (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Panama, Peru, Paraguay, Uruguay and Venezuela), said the US actions threatened the balance of international trade and affected the credibility of the WTO. The Bolivian quoted from the Rio Group's statement of 8 March rejecting the US actions.

While supporting the efforts to promote democracy and human rights in Cuba and critical of the Cuban actions in shooting down two US "civilian aircraft" (after which President Clinton reversed his earlier position and withdrew his threats to veto the bill), Canada felt that the US response of sanctions in the law was not appropriate. Canada was even more concerned about the extra-territoriality of the US law. It had already taken up the issue for consultations within NAFTA. Canada again repeated its view that US should abide by its WTO obligations.

The EU joined in deploring the US action and expressed its concerns over the extra-territoriality of the US law. The EC Council of Ministers was meeting early next week to consider the EU response and how to defend the EU's rights.

Mexico noted it had joined Canada in seeking consultations under NAFTA, and noted that consultations were due to take place later this month.

India said the US action was not consistent with its obligations under the WTO. As a country, India had always been opposed to unilateralism and extra-territoriality and use of trade measures for non-economic objectives. It urged the US to reconsider its actions.

Nicaragua saw the US actions as detrimental to the multilateral system and totally rejected the US unilateralism and extra-territoriality.

Madagascar expressed sympathy for Cuba and endorsed Cuba's indignation, while Jamaica expressed concern over the extra-territorial provisions.

Philippines for the ASEAN, Australia, Switzerland, Norway, Trinidad and Tobago were among others who expressed concerns over the extra-territoriality of the US law and actions and the violation of WTO rules.

Japan said it too was particularly concerned about this aspect, and added that the US action was also a violation of the US-Japan Treaty of Commerce and Navigation.

The US said that governments who were concerned about the US action should also be equally concerned over the Cuban action in shooting down the US planes. People doing business in Cuba, using confiscated property without compensation to the former owners were furthering the wrongs committed against the former owners and undermining the interests of the US.

The US representative said that the US was still framing the guidelines and mechanisms for implementing the law and that these would be made public when these were completed. The US was also consulting its trading partners over the implementation.

The Council took no action, nor had Cuba called for any. Earlier, the Council agreed to set up a working party to deal with the request for accession by the Kyrgyz republic. The application, and setting up of a working party, had been supported by India, US, Turkey, Switzerland, EC, Pakistan, Poland and the Philippines (for ASEAN).

The WTO Director-General also announced that the term of office of three of his deputies -- Mr. Anwar Hoda, Mr. Warren Lavorel and Mr. Jesus Seade -- had been extended by a year, primarily because of the forthcoming Singapore meeting.