Swedes bid to defuse EU-US trade disputes

Date: 25/01/01

By Tim Jones

SWEDEN is demanding urgent action to nip the growing number of EU-US trade disputes in the bud.

The EU presidency fears that unless the world's biggest trading blocs tighten up their 'early-warning system', a spat over tax breaks for multinationals, food standards or aircraft subsidies could escalate.

"Too many conflicts develop before we get political action," said Swedish Trade Minister Leif Pagrotsky. "The two of us account for a third of world trade so there will always be problems, but we must ensure that we get a grip on bilateral rows before they become aggravated."

The EU and US set up a disputes-settlement trigger two years ago to pre-empt the kind of battles seen over the EU's banana import regime or ban on imported beef.

New skirmishes over the US foreign sales corporation regime and 'carousel' rotating sanctions have since called the system into question. Washington and Brussels are now squaring up for a row over government loans worth h2.3 billion to Airbus to build a new superjumbo.

The first official EU-US trade dialogue since President George W. Bush took office will be held in Stockholm tomorrow (26 January).

Sweden in demanding urgent action to nip the growing number of EU-US trade disputes in the bud.