Brussels, 10/05/2001 (Agence Europe) - The Union is threatening to challenge before the WTO the anti-subsidy measures imposed by the United States on imports of low enriched uranium from Europe, if the countervailing duties, for the time being provisional, were to be made continuous.
The Union states its "disappointment" and "concern" with the preliminary decision taken by the American Department of Commerce, despite numerous "persuasive" counter arguments that have been put forward by the Community Executive, as well as by the Member States and companies directly concerned. It is also concerned, more generally, of the use of such measures "to protect" American industry, in this case the United States Enrichment Company (USEC), itself the beneficiary of generous public assistance, while the representatives of power plants are opposed, underlined the spokesperson in a press release issued on Thursday. Euro-American talks on this issue will continue and, eventually, extend under the auspices of the World Trade Organisation (first phase of the multilateral dispute settlement procedure, Ed.) is the decision is not overturned at the stage of final the conclusions of the American procedure, added the spokesperson.
An anti-subsidy procedure had been launched last 27 December, in the US, in view of verifying whether the deliveries of low enriched uranium from France, Germany, the Netherlands and the United Kingdom sent by the companies Urenco and Eurodif, had unduly benefited from public aid. In the preliminary conclusions of the investigation, handed last 8 May, the Department of Commerce (DC) considered the three Urenco establishments (D, NL, UK) as an international consortium and cumulated the individual subsidy margins of each company; the margin was thus set a 3.72%, though most of the so-called subsidies came from the "cancellation of debt or the support to research and development". The Department of Commerce also felt that the public electricity company Electricite de France has subsidised the French Eurodif by paying too much to buy it. Thus the subsidy margin reached rises to 13.94%. The anti-dumping procedure, lead at the same time, will only issue its preliminary conclusions next 5 July and could possible lead to the DC establishing additional provisional duties.
The Member States and the companies concerned have fully co-operated in the investigation and have produced evidence refuting most of the allegations made, replies the Commission. Moreover, it appears to the Commission that, with regard to the multilateral agreement of subsidies, the USEC should not have been authorised to file a complaint since it is not a producer, but merely a supplier of enrichment services. Also warning that by rejecting this argument, the United States is in contradiction with its own position in GATS and their defence in a certain number of court cases.