ACP STATES SAY EC OILS TAX PLAN BREAKS ACCORDS
Developing countries said the European
Community (EC) would breach two international agreements if it
went ahead with its plans for an oils and fats tax.
    Ambassadors to the EC from African, Caribbean and Pacific
(ACP) states told a press conference the tax would hit the
exports of 26 ACP countries.
    They said the EC failed to follow consultation procedures
laid down in the Lome Convention which regulates relations
between ACP states and the bloc for moves which could affect
trade between the two sides.
    They also said the EC would be in breach of an undertaking
not to bring in new protectionist measures during the current
Punta del Este round of world trade negotiations being held
under GATT (General Agreement on Tariffs and Trade) auspices.
    The EC Commission has proposed a tax of up to 330 European
currency units (Ecus) a tonne on both imported and EC-produced
vegetable and marine fats for human consumption, which could
raise up to two billion Ecus a year.
    EC farm ministers, who would have to approve such a tax,
are split on the issue and are expected to decide it at a
marathon meeting on EC farm prices beginning in Luxembourg on
June 15.
    Jamaican ambassador Leslie Wilson said ACP countries are
convinced this would lead to EC industry substituting products
made within the bloc for oil and fat imports. The ACP estimates
this would result in a fall of 160 to 185 mln Ecus in its
member country exports.
    "We can't believe the EC would willingly take measures to
undermine our countries, but such would be the impact of these
measures," Wilson said.
    The U.S. and Malaysia say their exports would also be hit
by the proposed tax and they may take retaliatory action if it
is approved.
    Wilson said the ACP would take such steps only "as a very
last resort," but added that the ACP is in touch with other
countries which oppose the plan.
    Wilson, who was chairing the news conference, made it clear
Jamaica itself would not be hit by the tax as it does not
export oils and fats.
    Among the worst hit countries would be Ivory Coast,
Senegal, Nigeria and Papua New Guinea, the ACP says.
 Reuter
