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."