US raises fears of tariff row over EU applicants

Date: 24/05/01

By Craig Winneker

THE US is warning of a possible new dispute with the EU over import duties in countries hoping to join the Union, saying they could discourage American firms from doing business in central and eastern Europe.

Robert Zoellick, the chief US trade negotiator, says Union officials are encouraging accession countries to delay lowering external tariffs to the common EU level, even as they harmonise other tax rates before becoming member states.

"The problem is, with the high tariff differential, you're getting more and more American firms that find it harder to do business in central and eastern Europe," Zoellick told European Voice last week. "I don't think that's good for central and eastern Europe or an American relationship."

A European Commission official said it was natural for accession countries to be given extra time to lower their external tariffs, and added that he saw no problems on the horizon as the countries would be part of the single market anyway.

But the US is already calling for a speedier timetable. Said Zoellick: "Can't we at least try to work it out so that they lower it to the common external tariff and then we'll work on something so that when they do come in we won't necessarily take any trade action?"

The US is warning of a possible new dispute with the EU over import duties in countries hoping to join the Union, saying they could discourage American firms from doing business in central and eastern Europe.