Bridges Weekly Trade News Digest • Volume 6 • Number 39 • 14th November 2002
European Commission Releases Draft Ecodesign Legislation
EUROPEAN LABOUR MEP TAKES STANCE AGAINST EU SUGAR REGIME
In an open letter published on 9 November, Labour Member of the European Parliament (MEP) for Wales, Glenys Kinnock, called on the EU and other WTO Members to reform agricultural policies based on export subsidies, internal price supports and direct aid to producers, blaming them for having a "devastating effect on developing countries’ efforts to participate in international trade." Referring to the emerging WTO dispute initiated by Australia and Brazil over the EU’s sugar regime with the African, Caribbean and Pacific (ACP) group, the MEP said it was clear that the 77 ACP countries as well as the Union would strongly defend the sugar regime under the EU’s Common Agricultural Policy (see BRIDGES Weekly, 17 October 2002). "Europe is the most costly producer of sugar and the world’s biggest exporter of white sugar," Kinnock stated in her letter. She further criticised that the EU would sell considerable amounts of sugar to several African countries such as Algeria and Nigeria, although "these would be natural markets for sugar from countries on their own continent, such as Mozambique." Kinnock also hinted at a somewhat two-faced negotiating approach pursued by the EU which would on the one hand negotiate with the ACP under the Cotonou Agreement to enable its partner countries to become more competitive in global markets, while on the other hand defending policies that ran counter to developing country interests that were "crying out for reform." Nevertheless, Kinnock also addressed the challengers of the EU- ACP sugar regime, saying their dispute was "about subsidies", but it was "promoted by two countries that subsidise their own industries."
"Letters To The Editor: Small Farmers Are Threatened By Policies That Need Urgent Reform," FINANCIAL TIMES, 9 November 2002.
METHANEX REFILES CASE WITH NAFTA OVER CALIFORNIA MTBE BAN
The largest global producer of methanol, Methanex Corp., based in Vancouver, Canada is looking for approximately USD 1 billion in damages in a new pleading it has filed with a NAFTA tribunal claiming harm caused by California’s 1999 decision to ban a gasoline additive methyl tertiary butyl ether (MTBE), which the company produces. There is suspicion that the additive has carcinogenic properties. Believing that the planned ban would cost the company US $970 million in business, Methanex already sued the US government in 1999 through a NAFTA provision. A NAFTA international tribunal subsequently passed a judgment that the corporation was unsuccessful in proving all aspects of the case, and gave Methanex 90 days to provide new evidence. Last week the corporation brought a ‘comprehensive new filing’ to the NAFTA tribunal. Michael Macdonald, senior vice-president of technology at Methanex, said on 7 November that "our fresh pleading will clearly demonstrate our case." The defendant in this case, the US Department of State, has one month to respond to the new filing.
"Methanex Refiles NAFTA Claim Over California Ban," NATIONAL POST, 7 November 2002.
The European Commission has circulated a draft legislative proposal combining two previously released proposals on ecodesign requirements and minimum energy efficiency standards for consumer appliances. The proposal forms part of the EU’s strategy to curb energy consumption and cut greenhouse gas emissions. It would constitute a framework directive and would require implementing measures to be developed, thereby allowing industry more time to adjust to the new legislation. Also, the draft legislation for the first suggests that ecodesign requirements might include quantitative limits on the consumption of resources in the production and use of appliances, as well as minimum recycled material content. The proposal will be discussed at a stakeholder meeting in Brussels on 18 November.
"Europe experiments with product ecodesign," ENS, 7 November 2002.
ON THE MOVE: PURI NEW UNCTAD TRADE DIVISION DIRECTOR
On 21 October, Lakshmi Puri (India) was appointed as the next Director of the UN Conference on Trade and Development’s (UNCTAD) Division for Trade in Goods and Services, and Commodities (DITC). Ms. Puri joins UNCTAD after 28 years with the Indian Foreign Service, working on administration and policy-making and in bilateral and multilateral economic diplomacy, with a focus on trade, economic cooperation and development. During her time with the Indian government, Ms. Puri helped formulate and negotiate both regional and interregional economic and trade initiatives. She has offered both theoretical and policy- related research to academic institutions and think tanks that work on trade and development issues. Between 1999 and 2002 Ms. Puri acted as the Indian Ambassador to Hungary and concurrently accredited to Bosnia and Herzegovina. Ten years ago she was placed as the Deputy Permanent Representative of India at the UN in Geneva, where she actively participated in UNCTAD events.
"Lakshmi Puri Appointed to Head UNCTAD’s Trade Division," UNCTAD, 7 November 2002.