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U.S. objects to WTO panel on Myanma



Tuesday September 22, 7:26 pm Eastern Time

U.S. objects to WTO panel on Myanmar trade ban

GENEVA, Sept 22 (Reuters) - The United States on Tuesday objected to the
creation of a World Trade Organisation (WTO) dispute panel sought by the
European Union and Japan over Massachusetts laws penalising foreign companies
doing business in military-ruled Myanmar.

U.S. Ambassador Rita Hayes said at a meeting of the WTO's Dispute Settlement
Body (DSB) in Geneva that she could not agree to the immediate establishment
of a panel and expressed regret the two trade powers were pursuing the case.

Even so, a three-man panel will be set up automatically, if the EU and Japan
do not drop their request, when the DSB next meets on Oct. 21. It will have
six months to decide if the U.S. state's action breaks WTO rules.

Massachusetts applies a pricing penalty to any goods or services offered by
companies still active on the market in Myanmar, whose military government has
been fiercely criticised by human rights advocates who say it is suppressing
democracy.

The EU and Japan, which are also critical of Myanmar's human rights record,
say the Massachusetts action is part of a pattern by U.S. states and
Washington of seeking to extend their jurisdiction beyond U.S. borders.

Hayes told the DSB the United States would defend the state's position if the
case went to a panel.

She said Washington was engaged in consultations with Massachusetts officials
and talking with the EU and Japan in an effort to find a solution to the
problem.


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