B4-0253, 0262, 0282, 0312, 0313, 0314, 0315 and 0316/99

Resolution on the US imposition of sanctions against EU companies as a consequence of the banana dispute

The European Parliament,

- having regard to its resolution of 11 February 1999 on the banana regime dispute with the US ((Minutes of that sitting, Part II, Item 19.)),

- having regard to its resolution of 18 November 1998 on the Transatlantic Economic Partnership between the European Union and the United States ((Minutes of that Sitting, Part II, Item 15.)),

A. whereas the United States has carried out its threat of unilateral trade sanctions, which have been a reality since 3 March 1999, hitting a long list of European products at an estimated cost to the European Union of EUR 450 million,

B. concerned that the US measures threaten the multilateral open trading system and endanger the functioning of the WTO,

C. noting that the US has not followed the only legally acceptable solution by waiting for the decision of the WTO panel on 12 April 1999,

1. Condemns strongly the US administration¨s decision to unilaterally withhold liquidation on EU imports, imposing a payment of guarantee for 100% duties on affected products; considers this unilateral measure to be a breach of the rules of the WTO;

2. Calls on the United States to abandon all unilateral action and fully respect the rules of the WTO;

3. Asks the Commission and the Council to take appropriate counter-measures within the legal framework of the WTO;

4. Supports the Commission's demand to set up a WTO panel to examine whether Section 301 of US trade law, on which the US Administration based its decision, is in compliance with WTO provisions, and urges it not to withdraw its demand in response to any unproved promises by the US;

5. Recalls its abovementioned resolutions and requests the Commission and the Council to keep all options open;

6. Takes the view that the 'millennium round negotiations¨ of the WTO, due to start at the end of the year, must ensure that the basic principles of sustainable development become enshrined in the WTO;

7. Firmly supports the Commission in its strategy in the banana dispute with the US, based on strict adherence to the rules and procedures of the WTO; urges the Commission to continue to defend the right of the EU to fulfil its development commitments to its ACP partners and its outermost regions;

8. Instructs its President to forward this resolution to the Commission, the Council, the Congress and the Administration of the United States and the Director-General of the WTO.