Monday October 22 1:06 PM ET

WTO Rules for U.S. on Shrimp Dispute

GENEVA (AP) - The World Trade Organization on Monday rejected for a
second time complaints by Malaysia that the United States is imposing
illegal trade restrictions on shrimp imports through a law aimed at
protecting endangered sea turtles.

A panel of trade experts upheld a ruling issued in June rejecting
Malaysia's complaint. The Asian country had claimed that Washington
should have fully repealed a law banning imports of shrimp from
countries which use trawling nets that trap turtles.

Only countries where shrimp nets are equipped with turtle-excluder
devices costing about $75 are allowed to export to the United States.
Environmental experts have said nets without such devices are killing
up to 150,000 turtles a year.

Following complaints from Malaysia, Pakistan, India and Thailand, the
U.S. law was ruled illegal by the WTO three years ago, angering
environmentalists who saw it as proof the WTO failed to take account
of environmental concerns.

The United States was given until December 1999 to change its system.
But instead of repealing the legislation, it changed its guidelines
and put into place a program of assistance to countries to help them
equip their fishing fleet with turtle excluders. It also lifted the
restrictions on Pakistan after deciding that country had sufficiently
strong measures to protect turtles.

In its June ruling, the panel declared itself satisfied with U.S.
action to comply with the original WTO ruling but stressed that there
should be more ``serious good faith efforts to reach a multilateral
agreement.''

Also Monday a separate appeals panel upheld a ruling that said Mexico
was continuing to act illegally by imposing antidumping duties on
imports of high fructose corn syrup from the United States.

Mexico claimed it had changed its policies after a ruling in February
2000 that it had not concluded correctly that cheap exports from the
United States were damaging Mexican producers. But the United States
said it was still imposing illegal duties.

The ruling opens up the possibility of the United States demanding
compensation or imposing trade sanctions on its southern neighbor.


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