EU concerned over U.S. moves on RI

EU concerned over U.S. moves on RI

BRUSSELS (AFP): The European Union yesterday expressed concern about a growing trend for U.S cities and states to consider legislation to penalize companies with links to countries like Myanmar and Indonesia.

In its annual report on the barriers to European companies doing business in the U.S, the EU's executive arm, the commission, expressed concern that such steps could become a major irritant in transatlantic trade relations.

The EU last month took the U.S to the World Trade Organization over legislation passed by the state of Massachusetts which forbids state authorities from signing or renewing contracts with companies doing business with or in Myanmar.

Brussels contends the law breaches U.S commitments under the WTO's rules on government procurement. When it passed parallel legislation on Indonesia, Massachusetts included an exemption for procurement covered by the General Procurement Agreement.

The commission welcomed this development but underlined that selective purchasing laws related to Myanmar had already been passed by New York City and were being considered by Connecticut, California and Texas.

A commission spokesman said the WTO action on Massachusetts had been designed to "nip a dangerous trend in the bud."

"We acted hard on Massachusetts to try and steer other states and cities away from this trend."