NAFTA & Inter-American Trade Monitor
Produced by the Institute for Agriculture and Trade Policy
November 1, 1996
Volume 3, Number 21

U.S. blocks WTO Cuba panel

From NAFTA & Inter-American Trade Monitor,
Vol. 3, no. 21. 1 November, 1996

The United States blocked the first request by the European Union for a World Trade Organization (WTO) dispute panel on the U.S. Helms-Burton law, which penalizes trade with Cuba. Despite U.S. delaying tactics, a panel will be created under WTO dispute-settlement rules when the EU makes its second request on November 20. The United States wants to claim the WTO's security exception clause for its Cuba sanctions, but these would not apply to third-party countries. The EU continues to work out complicated internal jurisdictional questions to determine which kinds of retaliation against Helms-Burton are appropriate to the EU and which should be reserved to member states.

Despite their dispute over Cuba, the EU and the United States continue work on other trade issues, such as a proposal for duty-free trade in information technology products. Other WTO disputes continue, with panels currently examining U.S. complaints about the Japanese consumer photographic film and paper market and Canadian objections to the EU's ban on hormone-treated beef. The United States withdrew a request for a panel against Pakistan on issues of patent protection for certain chemicals and Canada withdrew a complaint against Brazil over alleged subsidies to a Brazilian aircraft manufacturer.

John Zarocostas, "U.S. Blocks Bid for WTO Panel on Anti-Cuba Law," JOURNAL OF COMMERCE, October 17, 1996; Richard Lawrence, "Despite Cuba Flap, US, EU Move Ahead on Trade Issues," JOURNAL OF COMMERCE October 18, 1996; "Jurisdiction Wrangle Complicates EU Response to Helms-Burton," INSIDE NAFTA, October 16, 1996.