GATT TO RULE ON U.S. CUSTOMS USER FEE DISPUTE
The world trade body GATT has decided to
set up an arbitration panel to rule on objections by Canada and
the European Community to a customs user fee imposed by the
U.S. Government, a GATT spokesman said.
    Canada and the EC told a GATT (General Agreement on Tariffs
and Trade) council meeting that the fee, which imposes a tax on
an ad valorem basis on imports as of December 1, 1986, is
illegal under GATT rules.
    U.S. Ambassador Michael Samuels said the fee, imposed by
the U.S. To help cover customs expenditure as part of the
Consolidated Omnibus Budget Reconciliation Act of 1985, does
not breach GATT rules and is similar to fees charged by many
other countries.
    Samuels suggested that a working party be set up to examine
the dispute, instead of a panel empowered to rule on it.
    In another development, Hong Kong, supported by a large
number of developing countries, attacked the "textile and
apparel trade act of 1987" introduced in the U.S. Congress last
February 19.
    Hong Kong representative Michael Cartland said the bill is
"blatantly protectionist." He added there is "almost nothing about
the bill which could be regarded as in any way consistent with
either the GATT or the Multi-Fibre Arrangement (MFA)."
    If the bill were to be passed by Congress, Cartland said "it
would forestall any attempt to negotiate liberalisation of
world trade in textiles."
    GATT's council also decided to set up a working party to
study China's application for full GATT membership. The group
is due to report to the next GATT council meeting on April 15.
 Reuter
