Negotiating round a range of trade barriers

Date: 03/07/1997

Fighting for better access to foreign markets is not always about slashing high tariffs or getting rid of quotas. Nor is the struggle restricted to traditional sectors such as farm goods, textiles and cars.

The market access unit also deals with more subtle barriers, such as the controversial law drawn up by the US state of Massachusetts last June which forbids all state agencies from signing new procurement contracts - or renewing existing ones - with foreign and domestic companies doing business with Burma.

EU trade officials call it the 'Helms Burton clone' and not surprisingly, given the legislation's extra-territorial reach, they are not pleased. Having raised the issue in bilateral talks with US trade representative Charlene Barshefsky several times over the last few months, Trade Commissioner Sir Leon Brittan has just lodged a formal complaint with the WTO. Similar action will probably be taken if Massachusetts or any other US state decides to take a similar decision on Indonesia.

The Commission team is also keeping a close watch on South Korea's frugality campaign to make sure that there is no discrimination against European exports.

Seoul says the move to cut back on conspicuous consumption is being initiated by 'civic organisations' worried about the country's economic well-being, and denies there is any attempt to reduce imports.

The EU has dropped the threat of WTO action against Seoul, following the government's promise that there will be no harassment of European exporters. But the Commission will be monitoring developments to ensure this commitment is met.

South Korea is most often cited by European exporters as the country which puts up the most trade barriers against them.

The unit is currently studying about 24 complaints against Seoul covering a range of issues including safeguard measures on meat, phytosanitary rules which prevent imports of European fruit, restrictions on the advertising of cosmetics and homologation tests for cars.

Japan, Taiwan, India, Pakistan and members of the Association of Southeast Asian Nations (ASEAN) are also on the list of countries being investigated. Brazil, Chili and Argentina are regarded as market access offenders - but to a lesser extent.

Closer to home, Poland, Hungary, Romania, Ukraine and Uzbekistan are in the Commission's sights.