000506 Ag Groups Hail Trade RetaliationMay 8, 2000Washington - A broad-based coalition of American agricultural groups applauded House passage of a trade bill that includes provisions to strengthen retaliation against countries that violate World Trade Organization rules. The American Farm Bureau Federation, American Meat Institute, Chiquita Brands International, Hawaii Banana Growers Industry Association, and the National Cattlemen's Beef Association said that enactment of H.R. 434, “The Growth and Opportunity Act,” which includes the “carousel retaliation” provision, will be an effective tool to bring the European Union (EU) into compliance with international trade laws. The “carousel” provision requires the U.S. government to rotate retaliation against nations that refuse to comply with WTO rulings. “The Carousel Retaliation Act,” which is now included in “The Growth and Opportunity Act,” has the bipartisan support of over 100 House and Senate members. In a joint statement, the agriculture coalition said: “Europe's repeated disregard of WTO rulings in both the beef and banana cases proves that static retaliation has not worked. Mandatory 'carousel' retaliation will help resolve these disputes and ensure the world trading system works the way it was intended. We have seen first hand how under the WTO system, injured parties can litigate for years, win their cases, and continue to suffer the consequences of illegal foreign trade practices. In the beef and banana disputes, economic harm to U.S. interests has gone on for a decade -- and the costs continue to mount. Now that the House has strengthened our retaliatory tools, we hope the Senate will take similar action quickly. We further urge the Administration to implement 'carousel' authority swiftly and effectively, consistent with Congressional direction.” Last year, the WTO ruled that EU trade practices regarding beef and banana imports were illegal and cost American agricultural interests more than $300 million annually in lost business. Despite WTO-sanctioned tariffs imposed by the United States in 1999, Europe has refused to bring its trade policies into compliance with international law. The “carousel” provision is intended to increase pressure on the EU to comply with WTO rules by requiring periodic rotation of products targeted for retaliation. While not changing the amount of retaliation being imposed, the carousel approach will increase the number of foreign interests who are penalized for Europe's illegal behavior.
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