ACP STATES SAY EC OILS TAX PLAN BREAKS ACCORDS
  Developing countries said the European
  Community (EC) would breach two international agreements if it
  went ahead with its plans for an oils and fats tax.
      Ambassadors to the EC from African, Caribbean and Pacific
  (ACP) states told a press conference the tax would hit the
  exports of 26 ACP countries.
      They said the EC failed to follow consultation procedures
  laid down in the Lome Convention which regulates relations
  between ACP states and the bloc for moves which could affect
  trade between the two sides.
      They also said the EC would be in breach of an undertaking
  not to bring in new protectionist measures during the current
  Punta del Este round of world trade negotiations being held
  under GATT (General Agreement on Tariffs and Trade) auspices.
      The EC Commission has proposed a tax of up to 330 European
  currency units (Ecus) a tonne on both imported and EC-produced
  vegetable and marine fats for human consumption, which could
  raise up to two billion Ecus a year.
      EC farm ministers, who would have to approve such a tax,
  are split on the issue and are expected to decide it at a
  marathon meeting on EC farm prices beginning in Luxembourg on
  June 15.
      Jamaican ambassador Leslie Wilson said ACP countries are
  convinced this would lead to EC industry substituting products
  made within the bloc for oil and fat imports. The ACP estimates
  this would result in a fall of 160 to 185 mln Ecus in its
  member country exports.
      "We can't believe the EC would willingly take measures to
  undermine our countries, but such would be the impact of these
  measures," Wilson said.
      The U.S. and Malaysia say their exports would also be hit
  by the proposed tax and they may take retaliatory action if it
  is approved.
      Wilson said the ACP would take such steps only "as a very
  last resort," but added that the ACP is in touch with other
  countries which oppose the plan.
      Wilson, who was chairing the news conference, made it clear
  Jamaica itself would not be hit by the tax as it does not
  export oils and fats.
      Among the worst hit countries would be Ivory Coast,
  Senegal, Nigeria and Papua New Guinea, the ACP says.
  

