EU points to signs of US protectionism

http://news.smh.com.au/business/eu-points-to-signs-of-us-protectionism-20080612-2pb7.html

The European Union has voiced concern about what it calls "worrying signs" of protectionism in the United States, citing anti-terrorism-inspired import controls and a recent farm bill drafted by Congress.

The EU, following a two-day review of US trade policy at the WTO, "drew attention to worrying signs of a re-emergence of protectionism in a number of policy areas in the United States," according to a statement from the European Commission.

It cited increased customs scrutiny, carried out in the interests of security, that it said held up imports. The statement pointed in particular to mandatory scanning of all goods containers.

The EU said "mounting restrictive import requirements for security purposes ... are imposing considerable burdens on EU exporters."

"The EU raised doubts about the compliance of these measures with World Trade Organisation rules, and their professed intent."

The statement also regretted that the United States had not "opted for a more reform-oriented agricultural policy in the new 2008 US Farm Bill."

President George W Bush vetoed the measure, which the EU says will increase trade-distorting agricultural subsidies, but Congress appears capable of overturning his decision.

China meanwhile used the US policy review to complain of the fall in the dollar, which it said contributed to a surge in the price of oil and raw materials to the detriment of developing countries.

Brazil accused Washington of applying tariffs on certain products that harmed the interests of developing nations, according to Clem Boonekemp, a WTO official responsible for trade policies.

Brazil, which principally exports processed agricultural products, said its exporters confronted US customs duties averaging 20 per cent at a time when US exports to Brazil face a tariff level of just 11 per cent.

The average US tariff on merchandise imports is 4.8 per cent.

The US ambassador to the WTO, Peter Allgeier, stressed that Washington had decided to abolish its tariff peaks in the context of the Doha round of global trade liberalisation talks.

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For those who haven't been following it, the Doha debates have been a long and frustrating attempt to cut farming subsidies in the US, EU and Japan. These hurt Australian farmers and screw over third world farmers. Bush has repeatedly offered to cut US subsidies, but the other countries have not taken up his offer.

From an old thread:

Bush backs Doha farm subsidy cut

http://www.smh.com.au/news/Business/Bush-backs-Doha-farm-subsidy-cut/2007/05/01/1177788092071.html

The United States will reduce farm subsidies but only if other nations agree to make tariff cuts, President George W Bush told European leaders as negotiators make a last-minute push to reach a deal in world trade talks.

Bush's comments come as the clock ticks on the troubled Doha round, which has been hindered since its launch in 2001 by persistent divisions over agricultural subsidies and tariffs.

They also coincided with a plea from the head of the World Trade Organisation's negotiations on farm trade, Crawford Falconer, who pressed the United States to make a more ambitious offer on those subsidies.

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WTO launches probe into US farm support

http://news.smh.com.au/wto-launches-probe-into-us-farm-support/20071218-1ho0.html

The World Trade Organisation (WTO) has launched an investigation into multi-billion dollar US farm subsidies that Brazil and Canada say break international trading rules.

The size of US farm subsidies is a major battleground in the WTO's six-year-old Doha round talks on opening world trade.

Australia and the European Union are among several other economies to join the case as third parties, allowing them to participate in the investigating panel.

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Australia blocks probe into NZ apple ban

http://news.smh.com.au/australia-blocks-probe-into-nz-apple-ban/20071218-1hq8.html

Australia has blocked a World Trade Organisation investigation into whether its 86-year ban on imports of New Zealand apples is legal under international commerce law, trade officials says.

An investigative panel, however, will almost certainly be set up when the WTO dispute body meets again early next year. A panel's establishment can be blocked only once under WTO rules.

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US must reform cotton subsidies: WTO

http://news.smh.com.au/us-must-reform-cotton-subsidies-wto/20071219-1hx2.html

The United States is not doing enough to bring its support for cotton into line with international trading rules, the World Trade Organisation said.

The published ruling by the WTO appeal body opens the way for Brazil, which brought the original case against the United States in 2002, to seek billions of dollars in sanctions against Washington.