CHINA FILES COMPLAINT OVER EU FOOD BANS
On 24 January, China filed a WTO complaint over a European ban on Chinese honey, shrimp, and other foodstuffs that contained traces of banned antibiotics. This is China’s first complaint about a European trade measure since its inception into the WTO in December. According to WTO rules, the Europeans have the right to ban food products for health reasons, but the issue in this case is whether or not the EU gave China enough time to deal with the issue after detecting the problem. Both sides are eager to resolve the dispute peacefully, and have agreed upon a joint study group to explore health concerns as well as setting up "early warning systems" to prevent similar future occurrences. The EU’s $US40 billion trade deficit with China is its largest with any other WTO Member.
"China Complaint On EU Trade Ban Shows Emboldened Policy," DOW JONES, 1 February 2002.
US ANGER GROWING OVER EU, CHINA GMO POLICY
The US is growing increasingly impatient with European and Chinese policies on genetically modified organisms (GMOs) which it claims are seriously affecting US exports of agricultural products. According to trade sources, US Trade Representative Robert Zoellick last week repeated threats that the US administration would seriously consider a challenge at the WTO should the EU not lift its de facto moratorium on the approval of new GMOs, in place since 1998. Zoellick also attacked China’s import regulations for GMOs — scheduled to come into effect on 20 March — which he said "as drafted, could serve as an unfair barrier to trade". China, however, remains adamant that it will not postpone the entry into force of its GMO regulations. For further details, see the forthcoming issue of BRIDGES Trade BioRes (for subscription details, see the Resources Section of this issue).
"USTR Zoellick questions China’s food import intent," REUTERS, 4 February 2002; "Zoellick warns Lamy of possible biotechnology WTO challenge," INSIDE US TRADE, 1 February 2002.
BANANA DISPUTE OFF THE DSB AGENDA
At the 1 February meeting of the WTO Dispute Settlement Body (DSB), the EC issued a request to officially remove its dispute with the US/Ecuador over the EU’s banana import regime from the DSB agenda. The long-standing dispute had finally been resolved in December 2001 when EU agriculture ministers adopted the EC’s new banana regime as agreed to by Ecuador and the US in October last year (see BRIDGES Weekly, 20 December 2001). In its statement, Ecuador reiterated that the new regime consisted of various phases, culminating in the entry-into-force of a tariff-only scheme by 1 January 2006, and reserved its right under the Dispute Settlement Understanding to refer back to the original panel if the EU did not comply with the recommendations of the DSB.
ICTSD Internal Files.