The WTO has given the EU the go ahead to impose upto $4bn of tarrifs against US exports as a punitive countermeasure for US state subsidies.
US tax legislation allowed exporters to receive tax credits, which the EU argued was an unfair advantage and a contravention of the rules of international trade.
By receiving the tax credits, the US exporters could reduce the selling price of their products by the amount of the credit and still maintain margins, giving them unfair advantage in foreign markets over indiginous companies.
Personally, I predict a 100% price tarrif on Florida orange juice, bearing in mind the Florida conections with the Bush family. Next in line for the EU will be US steel exports. I’d expect Australia to monitor, and possibly join in with, the sanctions if America doesn’t kick up too much fuss.
Source: http://edition.cnn.com/2003/WORLD/europe/05/07/eu.us.sanctions/index.html
By: Arabella-Cox - 9th May 2003 at 08:36
“But didn’t the US impose tarrifs on Australian steel?”
I’m not sure about steel, but they certainly put tarrifs on Ozzie and our Beef… seems the poor US cattlefarmers can’t compete in the real world.
(Note with the aussies sending some of their SAS troops to Iraq they are currently negotiating a fre trade agreement with the US… after Helen Clarke said that if gore was president there wouldn’t have been a war… for which she was asked to appologise, and later stated that the war was bad news for all small countries in the world, we were told the US wasn’t ready to form a free trade agreement with yet… despite the fact that our government subsidises nothing.)
“although I don’t know much about NZ politics, it does seem that the Greenies annoyed the US.”
I disagree, I think it was our anti nuclear stance that p!$$ed them off and they haven’t gotten over it yet. That was through a labour government and no national government has had the balls to overturn it… it is no longer a greens issue… I don’t think anyone wants nukes here… though I do miss the visits of the big ships.
It certainly killed ANZUS ( a treaty between Australia, New Zealand and the US).
By: mongu - 8th May 2003 at 18:38
But didn’t the US impose tarrifs on Australian steel?
I would seriously expect some retaliation. Surely the local steel companies will lobby Howard.
Garry, although I don’t know much about NZ politics, it does seem that the Greenies annoyed the US. Didn’t Helen Clark have to share power with the Greens for a while? I guess that’s where the annoyance came from (ie for the US, Greens=Commies=Terrorists=Muslims)
By: Hand87_5 - 8th May 2003 at 12:08
Those nuke tests were a big scandal here as well.
Chirac made the decission by himself and many French people were against it.
France did it’s first nuke tests in Algerian desert !!!
All the nuke test in the USA , Russia etc have often been made
without any condideration for the locals : a shame really.
By: Arabella-Cox - 8th May 2003 at 12:03
Ironic twist of fate that New Zealand is more likely to get on board than Aussie is… the only two real problems both countries have had with France was nuclear testing and the attack in Auckland harbour… considering New Zealand is slightly closer and Oz was used for testing British bombs anyway, you’d think we’d be sucking up to the Yanks and it would be Oz cuddling up to the europeans.
Of course we’ve both been dropped like hot spuds before, by both Europe and America… time will tell I suppose.
By: Hand87_5 - 8th May 2003 at 10:12
Garry ,
I suppose that some will reply that ‘s France fault 🙂
By: Arabella-Cox - 8th May 2003 at 02:38
“I’d expect Australia to monitor, and possibly join in with, the sanctions if America doesn’t kick up too much fuss.”
They are currently trying to capitalise on their support to try to get a free trade deal with the US… I doubt they would risk that, after sucking up pretty hard to get it…
New Zealand has been told there will be no free trade agreements with the US for the time being… apparantly we are not democratic enough… guess they never heard of Kate Shepherd…
Still with our PM saying stuff like the war wouldn’t have happened if Gore was Pres, and that the way the US is acting (with the UK and Aus at its tails) no small country is safe, I guess it might take a change of government before the richest, most powerful country in the world that is the only world super power can compete on even terms with our beef and lamb farmers… 🙂
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May 8, 2003 at 1:17 am