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| Europe |
| Brussels to investigate US contracts in Iraq |
| 2003-04-11 |
| The European Commission is examining contracts awarded by the US for reconstruction work in Iraq to find out whether they breach World Trade Organisation rules and discriminate unfairly against European companies. Fine, you do that. We'll be busy investigating contracts between EU members and Saddam. Something about an elf, know anything about that? The move could throw up a new irritant at a time when relations between Washington and Brussels are already severely strained by the highly critical stance adopted by many European Union members towards the war in Iraq. It also comes as trade negotiators on both sides of the Atlantic struggle to overcome their differences over further trade liberalisation in the current WTO round as well as a growing number of bilateral trade disputes. The EU insists that the US abide by the WTO Agreement on Government Procurement, which states that, in principle, contracts awarded by national governments or their agencies must be open to businesses from abroad. However, a spokeswoman for Pascal Lamy, the EU trade commissioner, conceded that this rule did not apply to vast bulk of contracts signed by the US Agency for International Development, the State Department organisation that oversees US humanitarian aid projects, and which so far has been largely responsible for reconstruction contracts in Iraq. Contracts that touch upon issues related to "national security" or "national defence" are also not covered by the agreement. I see, you are complaining that we should abide by a rule which you admit does not apply. This is because WTO members were given significant leeway in deciding what sectors and government agencies they would open to foreign competition. "We will be examining [the contracts] on a case-by-case basis. We have to examine whether each of them falls under the exceptions the WTO rules provide for," the spokeswoman said. However, the Commission stressed that it was keen to avoid formal proceedings against the US in front of the WTO: "The last thing we need now is a row at the WTO," she added. That's right, we're pissed at you already. Don't push your luck. Officials also said that they were not aware of any complaints from European companies regarding the current tenders for reconstruction work. "We have not yet identified any particular problems. We hope that they respect the rules. But if they don't, there is the WTO," a Commission official said. Let's see, no one has complained, government contracts are not covered by your rules, and still you are threatening a investigation. Typical euro. |
| Posted by:Steve |
| #21 TGA, you're making assumptions about a Government that can't be made. Do consider that we would not hesitate to make the world pay dearly for such a proposal. |
| Posted by: Anonymous 2003-04-11 23:27:37 |
| #20 The U.S. GDP (2001) was about 10 trillion dollars, the "national debt clock" of today says 6,47 trillion dollars, so national debt is about 64% of the annual GDP. The Euro states are not allowed to have a debt of more than 60% of their national GDP (Germany has a bit more, about 62%). So there doesn't seem to be a big difference. But America's Total Debt - household, business, financial and government sectors - is 34 trillion or $119,442 per man, woman and child. 61% ($21 trillion) of this debt was created since 1990, a period primarily driven by debt instead of by productive activity. In Europe it's only a fraction of that. A concerted financial action of Europe and the Arab states against the United States would lead to worldwide economical havoc. But the US depend on imports of capital a lot more than Europe, Arab countries trade more with Europe than with the US (oil - goods). So an all out trade war would be not only plain stupid it would make the US economy crumble while Europe may survive with a very bloody nose. |
| Posted by: True German Ally 2003-04-11 20:36:57 |
| #19 While I appreciate TGA's pointing out, as other Europeans' do, our debt, can he really tell me what kind of shape the EU books are in? From what little I've been reading, the books make Enron look like a minnow. And I see Germany voted to raise taxes to solve its problems. |
| Posted by: Anonymous 2003-04-11 19:42:13 |
| #18 oops, forgot to put my name |
| Posted by: True German Ally 2003-04-11 19:34:45 |
| #17 As did the wonderful UN sanctions in Iraq. If there ever was a good reason to fight that war for it's the end of these sanctions that killed a thousand times more children than the war. Sanctions don't work with dictators. Smart missiles do as it seems. This is actually the reason why I came around from being anti war to pro war. The children killed during the bombings were a sad sight. But the silent mass murder stops now. And this is the real good news about it all. |
| Posted by: Anonymous 2003-04-11 19:33:39 |
| #16 I have to agree with TGA on this.. wouldn't help anyone. Indeed, the way the world economy is structured right now, a big trade war could kill more people than all the military wars of the past. |
| Posted by: Dishman 2003-04-11 19:20:42 |
| #15 Schroeder's approval ratings... somewhere around 25 percent right now. Of course it's about the economy. But it also shows that Anti-Americanism doesn't get you very far in Germany. At least not for a longer time. Old Patriot, if you want a democratic reform of the EU I'm the first to join you in that endeavour. You can't screw the Euro much though, as most of the Euro trade is between EU countries anyway. And Russia is thinking about a bigger role of the Euro as well. When it comes to the economy the United States might be more vulnerable as you think. 6 trillions of debt, 600 bn of dollars foreign investment every year. Pissing too many countries of the world off might not be a very healthy idea. Btw an European economy in good shape is good for the U.S. as well. And viceversa. If the EU and the U.S. start a serious trade conflict the world economy will plunge into depression, not recession. Won't help anyone. |
| Posted by: True German Ally 2003-04-11 17:39:36 |
| #14 TGA, What I'm saying is not to boycott goods produced WITHIN the European Union, but to refuse to do business with any European Union bureaucracy or anyone working through an EU bureaucracy. All US trade negotiations for country-to-country exchange should be with the individual country, not the European bureaucracy that Fance, Germany, and Belgium want to force on all of Europe. I'd also add to that the requirement that all payments to/from the United States be either in gold or in US dollars. Screw the Euro to the bloody wall, low enough to be an easy target. |
| Posted by: Old Patriot 2003-04-11 17:24:21 |
| #13 in any case, TGA, we wont be focusing on taking it out on Germany, which is probably close to electing a CDU govt anyway, we'll try to pry them loose from the axis of weasels. We'll punish France, and maybe Russia, and we can do that in many ways without violating WTO - eg we can press against France's sphere of influence in Africa. |
| Posted by: liberalhawk 2003-04-11 16:52:32 |
| #12 similarly i'll buy a German made Daimler chrysler over a German made Volkswagen, and a US made Daimler Chrysler or VW over those, but I'll probably actually buy a US manufactured Honda or Toyota (coalition of the willing) over any of the above (the Mexican parts dont bother me - they didnt support us, but they werent like Germany or France, and they need the money, and the North American economy is highly integrated) |
| Posted by: liberalhawk 2003-04-11 16:49:11 |
| #11 "On a funny note: 51 percent of Evian, the famous French mineral water, is owned by who? Coca Cola " So - instead of buying evian, i buy a domestic bottled water - all returns to labor are now US, and so are 100% of returns to capital rather than 51%. Boycotts still work in a global age, just more subtly. |
| Posted by: liberalhawk 2003-04-11 16:45:32 |
| #10 "Trade conflicts always hurt both sides." But TGA, in this case it sounds like Belgium is trying to start one. |
| Posted by: liberalhawk 2003-04-11 16:43:00 |
| #9 Old Patriot, about 80 percent of EU trade is between EU members (excluding UK). Only about 10 percent of trade is with the U.S. Of course much of it is done between multinational companies. Daimler Chrysler producing in the US, Procter and Gamble in Germany. Boycott anyone? How? The CEO of Hochtief, a big German construction company commented: We are absolutely international, we are German, American, French, Spanish etc. And we pay our taxes in the respective countries. What do you mean by stopping trade deals with the EU? Jobs for more U.S. bureaucrats? The will just love being busy for the next year. Btw the EU has not taken advantage of the WTO ruling about steel tariffs it won against the U.S. Trade conflicts always hurt both sides. Might even hurt the U.S. more than the EU On a funny note: 51 percent of Evian, the famous French mineral water, is owned by who? Coca Cola |
| Posted by: True German Ally 2003-04-11 15:57:53 |
#8 The EU insists that the US abide by the WTO Agreement on Government Procurement, which states that, in principle, contracts awarded by national governments or their agencies must be open to businesses from abroad. Chipping away at our Constitution as hard as they can. I guess they want the whole world to be a failed Socialist welfare state under seige by Islamonazis. Screw the EU. Rot you bastards. |
| Posted by: Celissa 2003-04-11 15:43:12 |
| #7 Belgium is indeed the "Mini Me" of France. |
| Posted by: Anonymous 2003-04-11 11:46:54 |
| #6 Could the EU please wait to start the trade war until after we finish mopping up in Iraq? Thanks. I understand that Rotterdam has a fine port. It's looking better and better all the time. |
| Posted by: Former Russian Major 2003-04-11 11:30:21 |
| #5 Belgium is mouthpiece of the European Union. The European Union is hostage to France and Germany. The thing to do is to stop doing business with the European Union, and establish one-on-one trade deals with individual countries. The EU won't last a week. |
| Posted by: Old Patriot 2003-04-11 11:07:31 |
| #4 We ought to look at de-Antwerping our container movements to the US and send them a message. No ranting, no raving, just start making a Plan B and they will come down about 10 dB. |
| Posted by: Alaska Paul 2003-04-11 10:22:45 |
| #3 Uuuuhhhh, Beavis, isn't it the WTO's job to examine contracts? As far as dealing with these Eurotrash, it's high time that Bush break out his "Stalin was a Pussy" T-shirt. |
| Posted by: Raj 2003-04-11 09:24:41 |
| #2 The Coalition of the Willing will now be opposed by the Coalition of the Whining. |
| Posted by: Glenn 2003-04-11 09:11:37 |
| #1 What a Joke! The Eu always resorts to threats that it cannot back up! It always runs and cries to the WTO. The Belgians are a ridiculous group of wannabees. Great Britian will never be dictated to by a little fingerpointing country. How can they join that bunch of whiners. France just uses Brussels as it's mouthpiece for a greater francophone europe. the US needs to stand up to this abuse and put them in their place. Start putting every type grievence through the WTO from even the smallest infraction. France can't yell loud enough, so it gets Belgium to chime in. This is done to make it look as though all of europe is behind this type of action. When it is NOT! |
| Posted by: George 2003-04-11 08:30:00 |