B4-0735, 0736, 0740, 0741, 0744 and 0747/97

Resolution on the negotiations between the Commission and the US Administration on the Helms-Burton Act

The European Parliament,

- having regard to its previous resolutions on extraterritorial policy and its effect on trade and competition in the world market, and in particular its resolution of 15 May 1997 on the suspension of the WTO dispute settlement procedure as regards the Helms-Burton Act ((nutes of that Sitting, Part II, Item 7.)),

A. whereas the Helms-Burton Act contains a number of provisions which are intended to extend US law unilaterally to companies from third countries (extra-territorial effect),

B. whereas the position of the United States may have a detrimental effect on the ongoing negotiations to conclude a Multilateral Agreement on Investment (MAI) within the framework of the OECD,

C. whereas progress has been reported in the MAI negotiations but whereas the impact on extraterritorial unilateralism of the United States remains unclear,

D. having regard to the arrangement - which is due to expire on 15 October 1997 - reached between the US Administration and the European Commission under which the WTO panel has been suspended, and the ongoing bilateral negotiations with a view to putting forward a joint proposal as part of the MAI negotiations to the OECD,

E. reiterating its conviction that the Commission's activities in this respect are part and parcel of the executive powers attributed to the Commission in that field of common commercial policy and must be covered by EU decision-making in accordance with the relevant treaty provisions in Articles 113, 228(3) first and second subparagraph, or 235,

F. having regard to the need for an interinstitutional trialogue in order to clarify the involvement of Parliament in EU activities in international organisations such as the WTO,

G. having regard to its request for an annual written report on the Commission's activities at the level of international organisations such as the WTO in order to ensure transparency in those matters,

H. reaffirming the need to defreeze/reintroduce the case at the WTO against extraterritorial policies such as the Helms-Burton and D?Amato-Kennedy Acts of the United States unless Parliament receives a satisfactory answer in keeping with its declared policy,

I. having regard to the Resolution of the 51st session of the United Nations General Assembly in which the US embargo against Cuba was again condemned by a large majority,

J. whereas several countries have reached satisfactory 'global compensation' agreements with Cuba to indemnify the owners of nationalized assets,

K. worried by the fact that since the arrangement was reached with the US Administration on the suspension of the panel, the US Congress has further tightened up its legislation by adopting eight amendments in plenary sitting on 11 June 1997,

L. whereas the United States have taken a position in which they dispute the responsibility of the WTO for this case and whereas attempts are even being made to strengthen exterritorial legislation in the field of trade policy,

M. whereas the US are attempting, through the OECD talks on investment, to circumvent the inevitable rejection of unilateral extraterritorial trade policy by the WTO dispute settlement,

N. reaffirming the importance of the multilateral character and impartiality of the trade system within the framework of the WTO and the GATT agreements,

1. Calls on the Commission to inform Parliament fully via its relevant committees on the implementation of EU-US understandings in the field of existing unilateral extraterritorial policies;

2. Calls on the Commission to pass on the European Parliament's appeal to the Congress of the United States to refrain from attempts to impose legal order on third countries by extraterritorial policy with damaging effects to the world trade order, including European companies;

3. Urges the Commission to make sure that the rules agreed in the framework of the WTO apply to any international agreements on investment and the protection thereof, e.g. against expropriation, which should not have retroactive effects;

4. Calls on the Commission and the Council to provide regular and comprehensive information on both the timetable and the content of the negotiations and on the positions and initiatives of the Member States at the OECD negotiations on a Multilateral Agreement on Investment;

5. Instructs its President to forward this resolution to the Council, the Commission, the governments and parliaments of the Member States, the OECD and the WTO.