EU-USA trade war heats up

03 June 1998

EU-USA trade war heats up

THE European Commission said it was “examining all appropriate responses” to a US move to introduce quotas on imports of wheat gluten from the European Union (EU).

The USA has introduced a three-year import quota on wheat gluten imports from the EU, limiting its share in the first year to 24,513 tonnes, after a similar surge in imports from the EU.

Brussels claimed that its Common Agriculture Policy (CAP) reforms had made EU wheat gluten cheaper than the US product. It added that it had co-operated with a US request for consultations over the issue and was “astonished” by the move after suggesting remedies and providing evidence of the economic causes for the exports increase.

The Commission said the quota was the “most trade restrictive measure that could have been applied and it was a major restriction on European exports.”

The US move came only days after it announced plans to subsidise its barley exports to a number of countries, in retaliation for a shipment of 30,000 tonnes of subsidised European barley shipped to California last week.

  • USA brings out quota weapon in trade war against Europe, FWi, yesterday (2 June) — Click here
  • Financial Times 03/06/98 page 7

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