Toledo, 19/03/2002 (Agence Europe) - During an informal meeting of Trade Ministers on 18 March in Toledo, the European Commissioner for Trade, and ECOFIN Council President, Rodrigo Rato, stressed the harmony that reigned and the clear compatibility between the positions of the Commission and the Spanish Presidency and its response to the blocking off of the US steel market. The Commission is going to set up a number of safeguard measures rapidly, where there is a danger that the trade flows that have been deflected due to US action, announced Pascal Lamy, adding that "This is just a question of days now".
Mr Lamy indicated that the European Commission was banking on the legality of immediate trade sanctions that could be set out if Washington refused to accept its demand for compensation. (On Tuesday in Geneva, EU and US experts held consultations in an attempt to reach an amicable agreement but were unsuccessful). Mr Lamy announced that they were going to move immediately to demanding compensation from the USA, which was a question of days not months. The Commissioner also indicated that the Union was not yet certain that it would take retaliatory measures , a possibility that exists to them in the multilateral agreement on safeguards if it proved necessary to retaliate to illegal restrictions. Jurisprudence was a particularly grey area, explained Mr Lamy, who also indicated that they were obliged to chose between two interpretations of Article 8.3 on whether they were going to take counter measures next year, after the publication of the arbitration verdict on the legality of US action or whether it should be done immediately, which would be possible in three months, "taking into account the manifestly unfounded nature" of the US safeguard measures that are expected as from Wednesday for the next three years. Mr Lamy said that whatever option they adopted, they would be obliged to notify the WTO of the products targeted by the possible counter measures in an effort to safeguard their rights. Mr Lamy emphasised that the Councils reflections on the affairs had completely confirmed that their line of conduct had been correct in view of minimising the impact of extra US taxes on EU industry. Mr Rato confirmed that Ministers and the Commission had unanimously condemned the US decision and warned about the US protectionist trend which meant bad news for world trade, adding, that all countries spoke about the need to defend Community interests in the framework of WTO rules, with the aim of not extending the conflict further than necessary. The Council condemned the unilateral and disproportionate restrictions that the United States has decided to apply to Spanish citrus fruit and ended the discussions on the transatlantic chapter by expressing the view that the EU and the US should start to consider in detail how to set up new bases for transatlantic trade relations which would be beneficial to both sides.
The Toledo meeting also considered strengthening relations with Latin America, particularly with countries in the Andes and Central America. Following an enthusiastic enjoinder from the Presidency, the Commission promised to put forward in the near future a five-year framework programme with a view to deepening economic and trading relations with Andean and Central American countries. The proposal will be put to the EU-Latin America and Caribbean Summit on 17/18 May in Madrid, but will not set any objectives for a free-trade zone, indicate diplomatic sources. The Council expressed confidence that Argentina would be able to develop a coherent economic programme to help restore credibility. Discussions over dinner focussed on Russia's application to join the WTO and developments in the Doha agenda.