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Europe Daily Bulletin No. 8171
Contents Publication in full By article 18 / 42
GENERAL NEWS / (eu) ep/united states/wto

Parliament adopts more hard-line position on "protectionist" decision taken by USA on steel

Strasbourg, 14/03/2002 (Agence Europe) - On Thursday in Strasbourg, the European Parliament adopted a common resolution passed by all the political groups (EPP, PES, ELDR, EUL/NGL and UEN) criticising the, "protectionist decision taken by the United States, in flagrant violation of WTO rules" to raise additional customs duties by up to 30% on steel imports. It points out that additional customs duties will also damage other steel producers in the world outside the EU, "with the exception of Canada and Mexico". The EP has called on the Commission to continue bilateral discussions with the US". Parliament has congratulated the European Commission for having immediately taken up matters with the WTO and taking all necessary measures to protect the Community steel industry, as well as having made demands for compensation. It also calls on the Commission to, "energetically explore all possible measures of retaliation and report back on possible temporary measures and the setting up of a WTO panel. The Parliament is afraid that protectionist measures ("which are rarely of advantage to those who apply them") will compromise finding an international solution, within the scope of the OECD, to the problems of over capacity and State Aids.

Dominique Souchet (Movement pour la France)has expressed anxiety about the growing divide between the USA and Europe on the analysis of the events of 11 September, even though collaboration between the European and American police had initially proved fruitful. According to Dominique Souchet, the Council Communication reflects this differend and is nothing more than a vague mandate for negotiation. Instead of furthering solidarity and strengthening Trans-Atlantic ties, the attacks of 11 September appear to have achieved the opposite, declared Philippe Morillon (EPP-DE France). Mr Morillon explained that this situation was down to the US preference for unilateralism in their decision-making process. The French MEP stated that crisis prevention was primarily a problem that should be dealt with at a regional level, as the crisis in the Balkans proved. Yasmine Boudjenah (EUL/NGL France) said that she was worried about the secret Pentagon plan that could lead to a US missile strike against a number of countries. "Using the pretext of the war on terrorism, the direction the US is going in is dangerous for the planet". Ms Boudjenah also pointed out that the US defence budget had increased by 15%.

The Spanish Secretary of State confirmed, on behalf of the Council, that the EU would resolve the conflict on steel "by way of the European Commission", given that the latter is exclusively in charge of common trade policy. Mr De Miguel declared that, "the EU adopted a firm line that was supported by unanimity by the General Affairs Council" on 11 March. He also added, "We can trust the European Commission's ability to demand concessions and retaliatory measures while respecting WTO rules". Mr De Miguel explained that respect for WTO rules would be the example shown by the Europeans. The US decision to stop imports of Spanish clementines means that Spain will have to lodge a complaint to the 133 Committee, which will assess whether a Commission mandate on the issue will be necessary. At the Trans-Atlantic Summit on 2 May, the EU will remind George Bush that the spirit of the Trans-Atlantic declaration signed in 1995, compels both sides to encourage co-operation and find joint solutions.

Commissioner Pedro Solbes explained that "the EU must strongly defend its interests, even if relations with the USA are fundamental". According to Mr Solbes, the link between the steel issue and others is because Europe supports the principle of multilateralism. He explained that negotiations between the US and Europe were going on over the question of clementines and Europe would apply all possible means within the WTO to resolve the issue. For the rest of the debate and the interventions by Mr Piqué and Mr Lamy, see EUROPE 14 March page 10.

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