CongressDaily | April 30, 1999 | by Keith Koffler
The Clinton administration is planning to bring seven new complaints of unfair foreign trade practices before the World Trade Organization, including two cases each against the European Union and South Korea and one against Canada. The cases will be announced today by the U.S. Trade Representative's office as part of its annual identification of U.S. priorities regarding trade expansion and enforcement. The United States has so far brought a total of 44 cases to the WTO. Twenty-two have been adjudicated, and 20 of the decisions have gone in favor of the Unites States, according to an administration official.
According to a list of the new WTO cases obtained by CongressDaily, the United States will file an action against the European Union regarding French subsidies provided for the development of a new flight management system for Airbus aircraft, which is run by a consortium of EU countries. The new case comes at a particularly contentious time in trade relations between the European Union and the United States, which already are battling over imports into Europe of bananas and hormone- treated beef, and competing with each other to nail down new trade agreements with China.
One of the cases against South Korea is a new action involving U.S. beef exports. The United States is arguing that the South Korean beef retail distribution system unfairly handles U.S. exports, and that South Korea maintains widespread import controls and minimum price levels that impede market access for imported beef.
Also being lodged is an intellectual property case against Canada. Under the WTO agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS, Canada is required to provide a patent term of 20 years from the date of filing, and it also must extend this protection to all patents already in existence on Jan. 1, 1996.
But Canada instead grants a 20-year patent term for patents filed on or after Oct. 1, 1989, providing only 17 years of protection for patents filed earlier.
The United States also is arguing that Argentina has failed to comply with the TRIPS agreement and that it has provided insufficient protection for undisclosed test data submitted to gain marketing approval for agricultural chemicals.
The action stems from complaints by U.S. drug manufacturers that their royalty rights have been infringed upon and they have not been able to make a profit under the Argentine system, according to the administration official.
The European Union also is being accused of violating the TRIPS agreement. The United States is objecting to EU labeling requirements regarding geographical indications for agricultural products and foodstuffs, and claiming that EU procedures related to geographical indications do not provide adequate protection for trademarks.
The other case against South Korea challenges Korean government procurement practices for airport construction. The United States claims Korea violates the agreement on government procurement by invoking domestic partnering and discriminatory licensing requirements, and providing inadequate access to challenge procedures.
Another action alleges India is engaging in practices affecting the automobile industry that violate the WTO agreement on Trade-Related Investment Measures.
The USTR today also will announce an action outside the WTO, a Section 301 investigation concerning Canada.
The case involves a Province of Ontario law that prevents U.S. fishermen from keeping fish caught on the lakes dividing Ontario and Minnesota, unless they either spend the night in Ontario or contribute to the Ontario tourism industry.CongressDaily: