I

106TH CONGRESS

1ST SESSION H. R. 1361

To bar the imposition of increased tariffs or other retaliatory measures

against the products of the European Union in response to the banana

regime of the European Union.

IN THE HOUSE OF REPRESENTATIVES

MARCH 25, 1999

Ms. WATERS (for herself, Mrs. MEEK of Florida, Ms. KAPTUR, Mr. BONIOR,

Mrs. MALONEY of New York, Mr. DEFAZIO, Mr. PAYNE, Mr. FATTAH,

Ms. BROWN of Florida, Mr. CLYBURN, Ms. CHRISTENSEN, Mr. DAVIS of

Illinois, Ms. JACKSON-LEE of Texas, Mrs. JONES of Ohio, Ms. KILPATRICK, Ms. LEE, Mr. LEWIS of Georgia, Mr. MEEKS of New York, Mr.

OWENS, and Mr. TOWNS) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To bar the imposition of increased tariffs or other retaliatory

measures against the products of the European Union

in response to the banana regime of the European Union.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. FINDINGS.

4 The Congress makes the following findings:

5 (1) The United States Trade Representative

6 announced on March 3, 1999, a decision to impose

7 contingent liability for 100 percent duties and begin
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1 withholding liquidation on imports of selected prod2 ucts from the European Union in response to alleged

3 harm caused by the banana regime of the European

4 Union.

5 (2) The United States does not export bananas,

6 and no jobs in the United States have been lost as

7 a result of the banana regime.

8 (3) The Caribbean countries that benefit from

9 the banana regime of the European Union comprise

10 less than 10 percent of the European market.

11 (4) Chiquita Brands is the only company that

12 claims to have been harmed by the banana regime,

13 and Chiquita Brands’ market share in Europe is

14 nevertheless much larger than that of the Caribbean

15 countries that benefit from the banana regime.

16 (5) The sanctions being imposed will affect a

17 wide variety of imports enjoyed by consumers in the

18 United States, including certain swine meats,

19 cheeses, sweet biscuits, bath preparations, candles,

20 handbags with plastic surfaces, paperboard, cash21 mere sweaters and vests, cotton bed linen, lead-acid

22 storage batteries, and electrothermic coffee and tea

23 makers.

24 (6) Consumers who purchase these products

25 could face significantly higher prices or shortages,
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1 and the companies that import these products could

2 face significant revenue losses and possible job losses

3 as well.

4 (7) The European Union is likely to retaliate

5 for these sanctions, placing prohibitive duties on an

6 unknown variety of United States exports and caus7 ing a trade war.

8 (8) Retaliatory sanctions on United States ex9 ports could threaten the viability of numerous

10 United States businesses and put countless Ameri11 cans out of work.

12 (9) Most of the countries that benefit from the

13 banana regime are small Caribbean democracies,

14 and banana exports are vital to their economic, so15 cial, and political stability.

16 (10) Without a viable banana industry, thou17 sands of Caribbean farmers would have no means of

18 support for their families.

19 (11) Displaced banana farmers in the Carib20 bean region could turn to the production of illegal

21 drugs as an alternative means of economic support,

22 causing an increase in illegal drug trafficking into

23 the United States.

24 (12) Displaced banana farmers in the Carib25 bean region could also attempt to emigrate to the
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1 United States themselves, causing a surge in illegal

2 immigration.

3 (13) The stability of the Caribbean region is

4 vital to the national interests of the United States.

5 SEC. 2. BARRING OF ACTION BY UNITED STATES IN RE6 SPONSE TO EU BANANA REGIME.

7 (a) BARRING OF ACTION.—Subject to subsection (b),

8 the United States Trade Representative, the United States

9 Customs Service, and any other officer or agency of the

10 United States—

11 (1) may not take any action to implement the

12 decision of the Office of the Trade Representative

13 announced on March 3, 1999, to withhold liquida14 tion on imports valued at over $500,000,000 of se15 lected products of the European Union, and shall re16 fund any bond or deposit given or duties paid by any

17 importer before the enactment of this Act pursuant

18 to such decision; and

19 (2) may not take any action to otherwise im20 pose increased tariffs on, or impose other retaliatory

21 measures against, products of the European Union

22 in response to the banana regime of the European

23 Union that is the subject of dispute proceedings, as

24 of March 1, 1999, before the World Trade Organiza25 tion, and shall refund any duties paid by any im-
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1 porter before the enactment of this Act pursuant to

2 any such action.

3 (b) REVOCATION OF RETALIATORY SANCTIONS BY

4 EU.—If, before the enactment of this Act, the European

5 Union imposes any increased tariffs on, or imposes other

6 retaliatory measures against, products of the United

7 States in response to the decision referred to in subsection

8 (a)(1) or in reponse to any increased tariffs on, or other

9 retaliatory measures against, products of the European

10 Union imposed by the United States in response to the

11 banana regime of the European Union described in sub12 section (a)(2), then subsection (a) shall take effect only

13 upon the certification by the President that the European

14 Union has revoked such tariffs or other measures.

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