ITALY STANCE ON EC OILS TAX NOT ENCOURAGING-ASA
Italy's response to protests by U.S.
Soybean producers about the proposed European Community (EC)
tax on vegetable oils and fats had not been encouraging,
American Soybean Association (ASA) board chairman George
Fluegel said.
    Fluegel, heading one of three U.S. Soybean producer
delegations currently on a lobbying tour of EC countries, told
Reuters in an interview meetings with officials from the
Italian Foreign and Agricultural ministries had not yielded
much to encourage hopes that Italy would vote against the
proposed tax.
    Fluegel said his delegation had received a negative
response from the Italian Agriculture Ministry, but that the
attitude of the Foreign Ministry appeared "more realistic."
    He said the proposed tax was discriminatory against U.S.
Farmers since it was basically asking them to help finance the
EC's Common Agricultural Policy (CAP) on oilseeds.
    Asked which EC countries might be expected to vote against
the proposed tax, he said, "Realistically, from the information
we're getting, it looks like the English, the Germans,
hopefully the Netherlands and Denmark." His delegation also
hoped to convince Belgium to vote against the issue, he added.
    Asked what form he thought U.S. Retaliatory action might
take in the event of the EC tax proposal being approved,
Fluegel said industrial as well as agricultural products could
be involved.
    U.S. Agriculture Secretary Richard Lyng warned the EC
yesterday it would face serious retaliation if it enacted the
tax.
    ASA president-elect Wayne Bennett said yesterday in The
Hague American soybean producers were confident the proposed
tax would be rejected.
 Reuter
