CongressDaily
The Office of the U.S. Trade Representative this afternoon released its 2000 inventory of trade barriers — which said the European Union's continued failure to implement a World Trade Organization-consistent banana "regime" and failure to comply with WTO rulings on hormone fed beef have harmed U.S. exports and undermined the credibility of the WTO dispute settlement process. The report also said EU regulatory procedures "often lack adequate transparency, proper scientific justification, and serve as protectionist measures," causing problems such as approving biotechnology products. In addition, it criticized the EU requirement that aircraft use "hushkits" as unfairly impeding U.S. sales.
Exports with Japan have improved 20 percent since 1993, the report noted, but added that the Japanese market remains burdened by excessive and costly regulations. One example cited was the high interconnection rates charged by dominant telecommunications provider Nippon Telegraph and Telephone. The report also said Korea "continues to be known as one of the toughest markets in the world for doing business."
Meanwhile, EU officials today accused U.S. industry and certain trade publications of engaging in a "misinformation campaign" on the Foreign Sales Corp. issue in an attempt "to keep the scheme alive." European Commission Trade Counselor Bert Van Barlingen pointed to stories comparing European value-added taxes to U.S. sales and corporate taxes, and said EU officials are "a bit surprised you continue to have arguments used in public here that are total misrepresentations. It's rubbish." Van Barlingen said the FSCs are a "clearcut export subsidy" and that the United States would have to comply with the WTO ruling against them. Van Barlingen said the Europeans have heard nothing from U.S. trade officials on FSCs, and described the U.S. officials as being "in internal deliberations" before they have to make a statement next month. — by Jerry Hagstrom:
