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U.S. hikes EU produce tariffs

WASHINGTON (AP)--The U.S. government said Jan. 28 it intends to raise tariffs on European fruit, vegetables, cheese and spices in retaliation for higher European Union tariffs on U.S. brown rice.

The EU is the biggest customer of U.S. rice, accounting for an annual $33 million in exports.

Last September, the EU raised tariffs above the rate it had agreed to in the Uruguay Round of trade liberalization negotiations. The current tariff is 65 euros a metric ton; under the old system it would have been between zero to 15 euros a ton, a rice industry group said.

The U.S. said it is invoking World Trade Organization rules because the new EU rice import system unfairly limits U.S. rice farmers' access to European markets.

"We have been trying for months to find a fair resolution that balances the concerns of both sides," U.S. Trade Representative Robert B. Zoellick said in a statement. "Since we have not resolved this problem through negotiations, we have to notify the WTO of our intent to exercise our rights to withdraw concessions."

WTO rules require any member that withdraws a trade concession to negotiate benefits that will compensate an affected trading partner.

If agreement can't be reached, affected countries may raise tariffs on imports of similar value.

The U.S. notified the WTO it has a list of more than 15 products it will target for increased tariffs of a similar value, including clementines, peaches, yogurt, processed cheese, Brussels sprouts and other food and spices.

Zoellicks's office said the U.S. intends to impose the new tariffs March 1. The Jan. 28 announcement was its required 30-day notice.

Date: 2/24/05


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