Lloyd's List | By Sandra Speares | March 3, 2004
AS TRADE disputes between the Europeaun Union and the US multiply "retaliatory imposition of trade sanctions tends to impoverish both," Richard Plender QC of 20 Essex Street has warned.
"Multiplication of WTO proceedings on a retaliatory basis is not in the interest of the US or the European Community."
Mr Plender's warning over the multiplication of trade disputes comes as the EU introduced additional duties on imports from the US on March 1 as part of a dispute over US foreign sales corporation tax.
This is just one of several trade disputes between the two parties that have been brought to the World Trade Organisation for settlement.
Additional duties on imports from the US will rise progressively to $ 4bn.
While Mr Plender backed the findings of a panel that decided the US tax legislation violated the WTO rules, he did not approve of the EU decision to apply countermeasures at a time when the US was considering two Congress Bills which would bring US corporation tax law into line with the panel's findings.
He said there would not be enough time to get the Bills through Congress before the countermeasures came into force, criticising comments made by European Commissioner Pascal Lamy in December that the EU had "left the door open for US action before countermeasures are applied".
Mr Plender described as "predictable" comments made by US Senator Baucus recommending that the US make a complaint to the WTO about "Europe's irrational restrictions on farm product imports".
At a recent World Trade Law Association conference, WTO deputy director general Stuart Harbinson said that while high profile disputes like that over the US foreign sales corporation tax seemed to "rumble on and on", "this should not obscure the fact that in the overwhelming majority of cases the WTO's dispute settlement mechanism seems to be rather effective".Lloyd's List:
