RESTRICTED
WORLD TRADE S/NGMTS/W/5
17July1995
ORGANIZATION(95-2031)
Original: English Negotiating Group onMaritime Transport Services
COMMUNICATION FROM THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES
Thefollowing communication iscirculated attherequest oftheEuropean Communities and
theirMember States tomembers oftheNegotiating Group onMaritime Transport Services.
___________
1. Inconformitywithparagraph8oftheDecisiononNegotiationsonMaritimeTransportServices,
theEuropean Communities andtheirMember States wishtobring totheattention oftheNGMTS
legislation about tobeenacted intheUnited States which theEuropean Communities andtheirMember
States consider tobeinbreach ofparagraph 7oftheDecision.
2. Forsome time, legislation hasbeeninpreparation intheUnited States topermit theexport
ofAlaska North Slope Oil. TheEuropean Communities andtheirMember States andother States
party totheMinisterial Decision havemade clear theirconcerns totheUnited States Government.
However, theUnited States Government haspublicly declared itssupport forthislegislation, onthe
basis ofaunilateral cargo reservation. Thelegislation isnowveryclose tofinalapproval.
3. TheEuropean Communities andtheirMember States consider that,inthelightoftheUnited
States Government 'spublicly declared position aswellasthefactthatcontracts forbulkoilshipments
areconcluded inadvance, thislegislation would clearly constitute aunilateral measure affecting trade
inMaritime Transport Services, byreserving exports ofcertain crude oiltoUS-flagged vessels.
4. Intaking suchameasure, theUnited States would, intheviewoftheEuropean Communities
andtheirMember States, beacting inbreach ofitsundertaking under paragraph 7oftheDecision
which would alsoundermine theobjectives oftheNegotiating Group onMaritime Transport Services
setupunder thatDecision. There isnojustification forthismeasure based ontheneedtorespond
tomeasuresappliedbyothercountries,withaviewtomaintainingorimprovingthefreedomofprovision
ofmaritime transport services. Itwould furthermore constitute theintroduction ofanewelement of
cargo reservation and,assuch, improve theUnited States 'negotiating position andleverage inthe
NGMTS.
5. TheEuropean Communities andtheirMember States request theChairman oftheNGMTS
toplace thisissue ontheagenda ofanearly meeting oftheGroup.