Brussels, 18/10/2000 (Agence Europe) - Following two days of technical talks with experts from the European Commission, a high-level American outlined the state of noticeable progress in the case of hormone beef, while confirming Washington's scepticism in the face of the solution considered by the EU to resolve the dispute over bananas. Negotiations are possible on the first dossier - on the basis of European compensation in the form of a additional quota for hormone free beef from the United States, but not on the second issue, noted those at the Community executive's seat: "We have a proposal on the table, which received the Council's support, thus, our path is clear".
Hormone dossier. During a press conference, Greg Frazier, American negotiator for agriculture, qualified as "very constructive" the talks with the agriculture and trade services in the Commission over hormones. Feeling that he is in a position to submit to the American farmers and authorities, after recently "positive moves" made by the Commission (among others, the decision to lowed the spot checks on American shipments down from 100% to 20%), "ideas to move forward. "This does not means that we have arrived at the end of the road", he however noted, while recalling that a central point remains to be agreed: what represents in quantity (in terms of additional quotas) the prejudice of USD 116.8 million per year suffered by American farmers due to the Community embargo on hormone beef. According to informed sources, Washington would have estimated at 50,000 tonnes the additional quota required, or two times more than the Europeans are prepared to concede. However, the United States are only using half the present quota, which they share with Canada (around 6,000 tonnes out of a total 11,500 tonnes). According to the farmers Union, the NCBA (National Cattlemen's Beef Association), the solution to enable them to increase their deliveries to Europe is mainly through the lifting of the 20% customs duty, which is presently applicable to them. "Our final aim is full access, but we would like to start with getting the beef to the market", indicated his spokesperson Julie Quick. The NCBA had indicated, in a letter to the Commission representative in Washington, that it was now ready to approve a lightening of American sanctions in exchange for a European compensation package including the dismantling of the duty. The answer for the moment is reserved to this last point: "the key is their ability to export. The application or not of the 20% duty will depend of the quantity that is delivered", underlines Brussels. The American authorities obviously give a great deal of importance to the farmers point of view. "The possibility of moving forward and reaching a solution depends upon it", underlined Mr Frazier.
Banana dossier. The American negotiator was much more positive with regards to the results of the discussions on bananas. It was "mainly" an exchange of views, which enabled each of them to clarify their position, he indicated, with reserve. Mr Frazier "directly" explained to the Commission the "reasons" for the serious doubts held by Washington as to the compatibility of the discussed solution with the rules of the World Trade Organisation (WTO). According to him, the quota system considered for the transitional period until the transition in 2006 to an exclusively tariff base system, would reproduce the problems it is supposed to remedy, namely: i) a preferential treatment in favour of ACP and discriminatory for the other partners as it sets aside to the former a Community market share, ii) the prohibitive effect of the level of preferential duty for some companies to the benefit of others. "The fact that the Commission promises to modify the system if it proves itself to be discriminatory proves that expects it to be so", felt Mr Frazier. He added that the objection made by Washington do not target the model of "first come first served", as such, but "the method of implementation". "The compatibility of the duty depends on its level" and in practice, he said, the ECU 300 per tonne considered for non-ACP bananas imported in the third contingent (preferential) will be prohibitive. Moreover, "the first to arrive there should be the first to enter, but this is not the case", he added referring to the fact that import licences will be allocated once the cargo loaded on a boat heading for the Union, rather than of the basis of the physical presence of bananas in a European port. Mr Frazier thus qualified the system: "everything that comes from ACP is served". "It does not seem that this may lead to a prompt resolution of the dispute. And the same thing goes for the carrousel retaliations against European industry? "We will see in the coming weeks, in relation to what happens as of now", he said.", he indicated, feeling that on such as basis, "it will not work", while awaiting to establish the final system (exclusively tariff based).
On a more general level, the American negotiator recalled "the renewed undertaking made by Washington" to resolve, the transatlantic disputes before the Summit next 18 December (President Clinton's last) and indicated that there "remains time in the period to come", adding, with irony, that the cut off date for his own efforts will be on 21 January 2001, "with the expiry of the present Administration.