EU holds its fire over US’ Cuba law

Date: 09/04/1998

THE EU will allow its complaint against US legislation which penalises foreigners for investing in nationalised Cuban property to lapse when it comes up for renewal later this month.

However, member states' ambassadors agreed this week that they would not hesitate to deploy this weapon again if Washington ever uses the Helms-Burton act to sue a European company under Title III or refuses entry into the US to any of the company's executives under Title IV.

Condemning the legislation for its 'extra-territoriality', the EU took its complaint to the Geneva-based World Trade Organisation a year ago. Since then, the US authorities have granted six-monthly waivers from enforcing both key titles.

As a result, the Union's ambassadors decided that the WTO case, which expires on 21 April, would not be replaced.

Instead, they agreed that a new suit would be filed immediately if action is taken against an EU firm or if the waivers are not granted.

EU will not renew its WTO complaint against the US's Helms Burton act unless the US takes any action against an EU firm.