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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 406 Introduced in House (IH)]

105th CONGRESS
  2d Session
H. RES. 406

 Expressing the sense of the House of Representatives that the canned 
fruit subsidy regime of the European Union is a bilateral trade concern 
    of high priority, for which prompt corrective action is needed.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1998

 Mr. Condit (for himself, Mr. Radanovich, Mr. Herger, Mr. Matsui, Mr. 
   Fazio of California, Mr. Doolittle, and Mr. Pombo) submitted the 
 following resolution; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                               RESOLUTION

 
 Expressing the sense of the House of Representatives that the canned 
fruit subsidy regime of the European Union is a bilateral trade concern 
    of high priority, for which prompt corrective action is needed.

Whereas a dispute settlement panel established under the General Agreement on 
        Tariffs and Trade (GATT) has already found European Union canned fruit 
        processing subsidies to be inconsistent with the European Union's GATT 
        obligations;
Whereas the United States, pursuant to an investigation of European Union canned 
        fruit subsidies under the authority of section 301 of the Trade Act of 
        1974, as amended, has determined that the rights of the United States 
        under the GATT have been denied by European Union canned fruit 
        processing subsidies;
Whereas under the authority of section 301 of the Trade Act of 1974, the United 
        States reached an agreement with the European Union in 1985, under which 
        the European Union has committed to discontinue subsidies to European 
        Union canned peach processors;
Whereas despite these legal and negotiated results, the European Union 
        nevertheless continues to provide subsidies to its canned peach sector 
        in the amount of $160,000,000 to $200,000,000 annually, which amount 
        exceeds the total farm-gate value of United States cling peaches;
Whereas data recently provided by the European Union demonstrate that the 
        European Union has violated the United States/European Union canned 
        fruit agreement in each of the last five years for which data are 
        available by an aggregate amount in excess of $64,000,000;
Whereas because these canned fruit subsidies are contingent on the use of 
        European Union peaches and enable prices more favorable than those the 
        European Union processor would actually have paid for the imported 
        product, such subsidies continue to be inconsistent with the European 
        Union's obligations under the World Trade Organization;
Whereas numerous canned peach producing countries, including Mexico, Argentina, 
        Australia, Brazil, and New Zealand, have taken formal trade remedy 
        actions to protect their industries from unfair European Union canned 
        fruit imports;
Whereas pervasive fraud and abuse under this subsidy regime have also been 
        documented;
Whereas these subsidy excesses, violations, and abuses have led to chronic 
        European Union canned fruit surpluses and escalating exports, which 
        exports have severely undercut prices and displaced United States sales 
        in all global markets;
Whereas European Union subsidy excesses in this sector are so extreme that 
        between 300,000 and 600,000 metric tons of Greek peaches are dumped 
        every year in waste pits, further depressing Greek and global canned 
        fruit prices;
Whereas the United States/European Union canned fruit agreement has failed to 
        prevent these trade-restrictive and distortive consequences;
Whereas United States cling peach growers and processors can no longer sustain 
        the unfair competition and harm being caused by unfairly subsidized 
        European Union canned peaches;
Whereas trade agreements such as the one now in place regarding European Union 
        canned fruit are of no value if they are inadequately enforced and 
        deliver no relief to the affected United States sector; and
Whereas the European Union for several years has resisted efforts by the United 
        States and most other non-European Union canned peach producing 
        countries to correct its canned fruit practices: Now, therefore, be it
    Resolved, That it is the sense of the House of Representatives that 
the United States Government should promptly take all necessary 
corrective action against the European Union canned peach subsidy 
regime in order to deliver tangible, meaningful relief to the United 
States industry and restore fair competition to this sector of trade.
                                 <all>
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