Moore Says EU And US Want Amicable Solution To Trade Dispute

by Leroy Baker, Tax-News.com, New York

23 August 2002

As America and the European Union anxiously await a World Trade Organisation ruling on the amount of sanctions which the latter can impose in retaliation for 'unfair' US tax breaks for exporters, WTO Director-General, Mike Moore stressed that negotiations are continuing, and that both sides are keen to reach an amicable agreement.

The EU has argued that it is entitled to impose sanctions worth some $4 billion per year. The United States, however, has hotly disputed this figure, arguing that the subsidies provided to exporting giants such as Microsoft and Boeing amount to no more than $956 million.

Despite this, the WTO Director-General explained, trade officials are determined to 'see what they can do to navigate this thing without making it into a trans-Atlantic crisis'.

Refering to the close relationship between US Trade Representative, Robert Zoellick and EU External Relations and Trade Commissioner, Pascal Lamy, Mr Moore explained to AFX that: 'People are trying very hard, and what you've got going now is a cycle of ministers who've got to know each other, who can work with each other.'

Speaking as he prepares to hand over to his Thai successor, Supachai Panitchpakdi at the end of August, the WTO Director-General expressed confidence for the future of the talks, revealing that preparations for the launch of a new round of trade negotiations between the two powers 'are in very good shape'.

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