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WTO says EU broke trade rules in Norwegian salmon dispute

17 November 2007, 14:06 CET

(GENEVA) - The World Trade Organisation on Friday said the European Union broke trade rules by slapping a charge on salmon exports from Norway but stopped short of calling for the measure to be repealed.

In January 2006, the EU decided to extend for five years a 2.80-euro minimum price per kilogram imposed on Norwegian salmon exports, as it accused Norwegian salmon producers of selling their fish at a loss.

Oslo filed a complaint with the WTO. Norwegian salmon farmers rejected the allegations of dumping and claimed the measures taken by Brussels were aimed at protecting salmon farmers in Scotland and Ireland which, unlike Norway, are members of the EU.

A WTO panel in a report highlighted 22 separate instances where the EU had acted "inconsistently" with global trade rules and urged the organisation's dispute settlement unit to ask the European Union "to bring its measures into conformity with its obligations."

But the WTO did not endorse Norway's call for the wholesale repeal of the export charges, saying it was for the EU itself to decide how to comply with the ruling.

Both parties tried to claim victory, with Norway citing the 22 infringements of anti-dumping rules as proof the EU was in clear violation of trading rules.

"In Norway's view, the anti-dumping measures infringe WTO rules in such a way that it cannot be maintained. Thus, Norway has prevailed," the Norwegian Ministry of Foreign Affairs said in a statement.

EU Trade Commissioner Peter Mandelson meanwhile said the fact the WTO did not directly call for the charges to be scrapped was in fact a victory for Brussels.

"I welcome the WTO's clear rejection of the Norwegian claim that the EU's measures against the dumping of salmon from Norway should be abolished," Mandelson said in a statement.

Text and Picture Copyright 2007 AFP. All other Copyright 2007 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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