EU row with US over bananas sales worsens

The EU Trade Commissioner, Sir Leon Brittan, yesterday unleashed a broadside against the US as it listed a wide range of EU goods…

The EU Trade Commissioner, Sir Leon Brittan, yesterday unleashed a broadside against the US as it listed a wide range of EU goods, including wine, cheese and pastries, against which it says it will impose 100 per cent tarrifs.

The move by Washington is the latest step in a long-running and bitter dispute over the EU's banana regime which is now threatening to turn into a full-scale trade war. Sir Leon said that the US action represented an attempt to set itself above international trade law and he called on the Clinton administration to adhere to the disputes procedures of the World Trade Organisation which prohibits unilateral action by member states.

Any persistence by the US, he said, would result in EU action through the WTO which could authorise compensatory reciprocal sanctions.

Among products in a preliminary list that could be affected by the new duties are certain types of food, toys, clothing, bed linens, electromechanical domestic appliances, electrical lighting equipment and electric water heaters, according to the office of the US Trade Representative.

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Patrick Smyth

Patrick Smyth

Patrick Smyth is former Europe editor of The Irish Times