EC Report Calls U.S. Trade Act Discriminatory

BRUSSELS —  The European Community Commission on Wednesday released its 1989 report on U.S. trade barriers, singling out 42 regulations and trade practices that it said impedes imports from the 12 EC nations.

The barriers include quantitative restrictions, export subsidies, customs barriers, public procurement policies, countervailing duties, anti-dumping procedures and tax policies, the report said.

Its release came a day after the Bush Administration released its report on foreign trade practices that it considers unfair.

EC Commission spokesman Claus Ehlermann said the timing of the release of the EC report was not linked to the U.S. report. He said the EC report was an annual event and its release simply “coincided” with the report by the Office of the U.S. Special Trade Representative.

‘Permanent Discrimination’

The EC report criticized the 1988 U.S. Fair Trade Practices Act, which it said will “make it more likely that unilateral action will be taken to redress allegedly unfair trade practices.

“Such unilateral action . . . without authorization from the General Agreement on Tariffs and Trade is illegal.”

The report also cited the “Buy American” provision of the U.S. Trade Act that “has created permanent discrimination in favor of U.S. products.”

The clause provides for action by the Bush Administration against foreign countries that discriminate against U.S. products or services in government procurement, including a ban against “offending” countries.

Another category of restrictions includes U.S. measures that have been found to violate international trading rules and in which the United States has neither modified nor offered compensation to its trade partners for trade damage caused.

As examples, the report cites the “U.S. failure” to implement findings of GATT on the illegality of the “Superfund” oil levy and the “nonconformity” of the U.S. system of customs users’ fees.