WRITTEN QUESTION E-3686/97 by Jesús Cabezón Alonso (PSE) to the Commission (19 November 1997)

Subject: The Helms-Burton law and agreements with the United States

With regard to the application of the Helms-Burton law and its consequences and in the view of the details of the agreement between the Commission and the US Administration, does the Commission not consider that the agreement is unbalanced, since Concessions are made by the United States, whilst commitments are made by the European Union?

Joint answer to Written Questions E-3686/97, E-3687/97, E-3688/97, E-3689/97 and E-3690/97 given by Sir Leon Brittan on behalf of the Commission (19 December 1997)

The understanding with the United States is not unbalanced. The Commission has brought a World trade organisation(WTO) panel procedure against the Helms-Burton Act. The Commission considers that this legislation is in violation of international law since it intends to influence (or has the effect of influencing) the behaviour of Community companies because of their involvement in Cuba. The understanding of 11 April 1997 reached between the Community and the US on the Helms-Burton Act and the D'Amato Act, by which the Community agreed to suspend its WTO case regarding the former, calls for the development of disciplines which 'should inhibit and deter the future acquisition of investments from any State which has expropriated or nationalised such investments'. In addition, and in parallel, the understanding also calls for the Community and the US to work together to address and resolve through agreed principles the issue of conflicting jurisdictions and secondary boycotts. It is important to note that the discussions between the Community and the US on this point are in symmetry with the discussions on investment disciplines. These talks are currently taking place with a view to finding an acceptable deal which will trigger a waiver under title IV of the Helms-Burton Act, thereby neutralising the extraterritorial effects of this Act.

In addition, the Community made clear that no settlement of the differences over the Helms-Burton Act will be implemented unless the United States has also granted Community companies a waiver under the D'Amato Act.

The Community has reserved all rights to resume the WTO panel procedure, or begin new procedures, if measures are taken against Community companies under Helms Burton or D'Amato as a result of waivers not being granted or continued.