12 April 1997
The Dallas Morning News
Jim Landers

Europe, U.S. call Cuba trade truce, Clinton to seek Helms-Burton changes

WASHINGTON - A potentially crippling blow to the world's trade court was averted Friday when the European Union said it would suspend a suit against U.S. anti-Cuba sanctions.

In return, the Clinton administration said it would seek to amend the Helms-Burton Act, which passed last year soon after Cuban jets downed two U.S. civilian aircraft over international waters.

The amendment would let President Clinton waive a ban on travel to the United States by foreign executives whose companies hold properties in Cuba that were seized from Americans by Cuba's communist regime.

Friday's announcement set aside the European Union's challenge to the U.S. law at the World Trade Organization in Geneva. U.S. officials had vowed to ignore the suit, insisting U.S. foreign policy was beyond the world trade court's jurisdiction.

Monday was the deadline for the European Union to submit its formal brief before the court, and trade officials on both sides of the Atlantic worried that a U.S. response ignoring the court would wreck it.

Friday's understanding suspends the European Union's suit but does not withdraw it. European officials stressed that it can be activated again if the United States does not live up to its end of the deal.

The understanding calls for negotiations on another U.S. law angering U.S. allies, the Iran-Libya Sanctions Act authored by Sen. Alfonse D'Amato, R-N.Y. It, too, punishes foreign companies dealing with nations the United States is trying to isolate with trade sanctions.

The deal hammered out in Washington on Friday came after months of intense negotiations led by Undersecretary of Commerce Stuart Eizenstat and Sir Leon Brittain, the European Union's trade commissioner.

Mr. Eizenstat stressed the 15-nation European Union's agreement to work toward global standards covering investments in properties confiscated by foreign governments.

Mr. Brittain stressed the U.S. side's agreement to work toward a standard covering extraterritoriality, the practice of applying one nation's law against companies and individuals of another country.

Mr. Eizenstat said the two sides pledged"best efforts" to seek an agreement on international property safeguards by Oct. 15.

"This understanding represents the beginning and not the end," Mr. Eizenstat said."An agreement on concrete, detailed principles will require enormous efforts by U.S. and E.U. negotiators, as well as continual consultations with the Congress."

Initial congressional reaction to the announcement was favorable. Sen. Paul Coverdell, R-Ga., who played a role in authoring the compromise, said the negotiations could"ensure that rules against trafficking in stolen property will become the international norm."

Many large U.S. companies have pleaded with Congress to shift away from enacting trade sanctions that punish both U.S. and foreign firms doing business with nations considered"rogue regimes," such as Iran, Libya and Cuba.

Last year, Congress also passed legislation threatening sanctions against Burma. Other bills have been offered targeting Nigeria and Indonesia, and Congress is once again threatening to withhold trade privileges from China.

A coalition of more than 300 small and large businesses called"USA-Engage," which is trying to promote alternatives to trade sanctions, has scheduled a Washington kickoff meeting next week.

Friday's announcements covering anti-Cuba sanctions were hedged substantially by both sides.

"Congress will have an opportunity to judge the merits of any agreement reached - and I will reserve judgment on the outcome of these discussions until that time," Mr. Coverdell said.

Mr. Brittain was also keeping his powder dry.

"Despite the success of our talks, both Helms-Burton and D'Amato are still on the U.S. statute book," he said."We continue to oppose the principle of extraterritorial laws."

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