Subject: Banana deadlock plunges WTO into unprecedented dilemma
GENEVA, Jan 29 (AFP) - World Trade Organization chief Renato
Ruggiero was holding urgent talks with EU and US ambassadors on
Friday as the transatlantic banana feud plunged the world body into
an unprecedented dilemma, trade diplomats said.
The relentless row between the two trade superpowers over a
fruit which is not even produced in the United States is sending
shivers around many world capitals because of fears it could fatally
damage the global rules-based trading system.
A meeting of the WTO's row-handling dispute settlement body
(DSB), which began on Monday with a brief to try and produce a
solution to the crisis, was set to be resumed on Friday afternoon,
having become bogged down again late on Thursday.
The United States is seeking authorization from the DSB to apply
100-percent tariffs up to a value of 520 million dollars (593
million dollars) on a series of European imports which have nothing
to do with bananas.
It is taking the step because of its judgement that Brussels has
not complied with a WTO ruling last year that its banana import
regime is illegal because it favours produce grown in Caribbean,
African and Pacific (ACP) nations, and damages imports of fruit
marketed mainly by US companies in Latin America.
Brussels believes it has rectified the situation by making
changes to its regime with effect from January 1, but the
amendements are seen as derisory by the United States, which argues
it is within its rights to retaliate.
US ambassador to the WTO Rita Hayes insists the DSB is legally
bound to grant Washington sanctions permission -- and before a
deadline of midnight January 30 -- with the idea that sanctions
would take effect March 3.
But many of the WTO's 133 members feel that the United States,
even if within its legal rights, could jeopardize the entire
organization if it goes its own way on sanctions before WTO experts
rule whether in fact Brussels' case has true legal merit.
A panel decision is expected mid-April.
The relevant WTO rules in the case are far from clear, and are
even contradictory.
The atmosphere of hostility between the protagonists is visibly
growing, with both sides pointing the finger at each other.
Meanwhile, other dispute-related work at the World Trade
Organization has virtually come to a standstill.
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