News Release

No. 131/04
September 21, 2004

STATEMENT BY EU SPOKESWOMAN ARANCHA GONZÁLEZ FOR TRADE ON THE US REQUEST FOR WTO CONSULTATIONS REGARDING EU CUSTOMS PROCEDURES

"The US has today requested WTO consultations concerning certain aspects of the EU customs regime. We regret the US move to bring this issue to the WTO rather than using the bilateral EU-US Joint Customs Council, which would have provided a better forum for resolving these issues. We now hope that any disagreement over this matter can be satisfactorily resolved in consultations and that we do not need to move to litigation. The consultations will give us an opportunity to explain to the US that we fully comply with all WTO rules relating to customs matters."

Background

The US requested WTO consultations concerning certain aspects of the EC customs regime on 21 September 2004.

A request for consultations is the first stage in the WTO dispute settlement process. If the differences over this issue cannot be satisfactorily resolved in consultations, the US may ask for a WTO Panel to be established to rule on whether the EC customs regime complies with WTO rules.

The nature of the US concerns are somewhat unclear to the EC, and the US did not exhaust the possibilities of finding a solution through bilateral discussions. The US never raised this issue in the EU-US Joint Customs Council.

The EC considers that the US complaint has no legal basis: the EC complies fully with all WTO rules relating to customs matters. WTO law does not require any WTO member to establish a centralised structure dealing with customs, such as a single customs authority. It is a choice of organisation which pertains to every WTO member.

The EC fails to understand how the US can complain about a lack of uniformity in customs treatment across the EU. The Community has in place several legal, institutional and administrative measures—enforced by the Commission—to ensure a uniform customs administration between our Member States.

Although WTO consultations do not seem the best way to resolve issues relating to the day-to-day operation of customs law and procedures, the EC intends to participate constructively in the consultations (to be held in Geneva, at a date to be agreed).