WRITTEN QUESTION E-1344/98

by José Salafranca Sánchez-Neyra (PPE) to the Commission

(29 April 1998)

Subject: Helm-Burton Act and relations with the US

In view of the recent decision of the US Administration in favour of the partial lifting of the restrictions on travel, humanitarian aid and remittances to Cuba, does the Commission believe that this decision may have ben influenced by the positions of the EU in the negotiations on the Helms-Burton Act? Was this subject discussed at the ministerial meeting of 15 January 1998?

In relation to the proposal made by Mr Brittan on the liberalization of transatlantic trade, does the Commission consider this proposal to be compatible with the extraterritorial effects of the Helms-Burton Act? Does it consider this proposal to be viable as long as there is no solution to the disputes between the Community and the US on the matter?

Joint answer to Written Questions E-1343/98 and E-1344/98 given by Sir Leon Brittan on behalf of the Commission

(12 June 1998)

Since the Honourable Member submitted his questions on the Helms-Burton Act, there have been a number of important new developments.

At the Community/United States Summit of 18 May 1998, the Community and the United States reached agreement, after more than a year of intensive negotiations under the terms of the 11 April 1997 Understanding on the Helms-Burton Act and Iran-Libya Sanctions Act (ILSA), on a package of elements that offer the real prospect for a lasting resolution of the differences over these Acts, which so negatively affect the political and economic relations.

This includes agreement on disciplines for new investments into illegally expropriated property and on principles concerning the use of secondary boycotts, containing a United States commitment to future extraterritorial legislation. As set out in the Community's unilateral statement issued in parallel, these elements need to be complemented by waivers for the Community and for Community companies under both Acts. In this respect, there is a commitment that the American administration will seek authority for an open-ended Helms-Burton Title IV waiver without delay. The Community will not implement the agreed disciplines concerning investment until this waiver authority is exercised.

In addition, with respect to Title III of the Helms-Burton Act, there is now not only a United States commitment to continue to waive the right to file law-suits until the end of the President's term, but also, for the first time, a clear undertaking by the American Administration to consult Congress about obtaining an open-ended waiver.

The United States had determined under section 9(c) of ILSA to waive the imposition of sanctions against Total and the United States has expressed its expectation that similar cases would result in like decisions for Community companies. As regards Libya, the Community achieved at the summit an American commitment to "engage with the EU in a sustained process for consideration of waivers under section 9(c) of ILSA to companies from the EU".

As to the World trade organisation (WTO) case, the Community has made it clear that it has reserved its right to re-establish a WTO panel against the United States in respect of the Helms-Burton Act if the above-mentioned waivers are not granted or are withdrawn or if action is taken against Community companies or individuals under the Iran-Libya Sanctions Act or if, by the time of the expiry of the President's term of office, no waiver without specific time limit in respect of Title III has been granted.