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EU Delays Wood Packaging Rule Opposed by US
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USA: February 25, 2005


WASHINGTON - The European Union will delay new wood packaging rules aimed at keeping out tree-eating insects that the United States has complained would disrupt $80 billion worth of its exports, an EU official said Thursday.


"The member states have agreed for a year to suspend this measure," Robert Madelin, director general of the European Commission's health and consumer protection division, told reporters. "What we've done is take a risk with Europe's forests to keep the trade going now."

The EU regulation, which was due to go into effect March 1, would require all the bark to be stripped off pallets and other wooden materials used to ship goods into the EU.

The United States complained that the US wood packaging industry has not had sufficient time to prepare and raised questions about the necessity of the measure.

"While we still have concerns about the underlying issue, we're pleased that this seems to be on track to having this huge trade problem averted," said Richard Mills, a spokesman for the US trade representative's office.

In a letter to EU member states earlier this month, then-US Trade Representative Robert Zoellick warned the "new measure will affect 50 percent of US exports to Europe or approximately $80 billion of our trade."

The EU directive is aimed at keeping out two pests in particular: the Asian longhorn beetle, which flies long distances and eats into hardwood trees, and the pinewood nematode, a tiny eelworm that kills trees.

The EU's "debarking" requirement would be in addition to other pest-eradication methods, such as heat treatment and fumigation, that the United States already employs in conformity with the International Plant Protection Convention.

The United States was joined by Canada, China, Mexico, New Zealand and the Philippines last year when it objected to the debarking measure at the World Trade Organization.

Ambassadors from the 25 EU members approved the one-year delay Wednesday, Madelin said. Although it still needs to be approved by the EU Council of Ministers Monday, that is only "a formality," he said. "We now have a guarantee of suspension on time ahead of the entry into force."

The near-disruption of trade caused by the EU directive was a failure of the "early warning" system set up years ago by Washington and Brussels to alert each other of potential problems, but blame lays on both sides, Madelin said.


Story by Doug Palmer


REUTERS NEWS SERVICE

Reuters



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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