EUROPEAN COMMUNITIES hopes to extend coverage to the four sectors covered by the EC directive and thereby escape its discriminatory impact. 6. Export Subsidies Policies Agricultural Subsidies: Export subsidies (export restitutions or refunds) are widely used by the EC to offset the competitive disadvantage to EC agricultural exports manifested by high EC internal support prices. EC expenditures on export subsidies exceeded $12 billion in 1990, with cereals, beef, sugar and milk and milk products accounting for the lion's share of expense; fruits and vegetables, wine, tobacco, pork, poultry and eggs also receive the benefit of export subsidies. Export subsidies are a very effective supply control tool for the EC, enabling it to dispose of its surplus production at prices that match, and often undersell, U.S. and other exporters' agricultural exports to foreign markets. The impact on world trade is large and growing limited only by EC budget concerns. As a result, disciplining export subsidies remains a central objective for the U.S. in the Uruguay Round negotiations. Industrial Subsidies: In recent years, the EC has taken steps to rein in certain subsidies. Examples include steel, shipbuilding and coal. A major sector where difficulties persist is civil aircraft. In this sector, the United States is continuing its effort to achieve effective discipline on the trade-distorting subsidies received by Airbus. The U.S. estimates that the Airbus Governments, France, Germany, the United Kingdom and Spain, have provided $25.9 billion in subsidies for the development and production of Airbus aircraft. These subsidies have enabled Airbus to ignore normal commercial cost considerations while pursuing world market share at the direct expense of U.S. manufacturers. Despite recent consultations with the European Community and a "conciliation" session pursuant to the GATT Subsidies Code, the issue has not been resolved. If a satisfactory negotiated solution is not reached between the United States and the Community, the United States ill ask a GATT Subsidies Code panel to rule on the matter. Also, in another Subsidies Code case brought by the United States against the Community, a panel is due to make a decision soon on the legitimacy of Germany's Airbus-related exchange rate guarantee scheme. 7. Protection of U.S. Intellectual Property The European Commission is committed to securing a high level of protection for intellectual property rights in the forge EC. The Commission believes that completion of the internal market will require harmonization of the scope of IPRTS JATOT protection so that trade within the community will not be distorted based on the absence of or inadequate protection of/08 rights in certain member states. The Commission has proposed directives in certain areas where inadequate IPR is seen as hindering development of EC industry (biotechnology patent, patent term restoration for pharmaceuticals, satellite and cable retransmission of copyrighted material), and has adopted The EC vignet 11 May 1991 a directive requiring mencer me to protect face as a literary work within the Tem 16 16 the Berie Caveation. Member states are required to 106 Lenear the firect. in 8tional legislation no later than Camary 1. 1392. The directive differs from 3.8. Law by Solve a specific exemption from protection for tecomp Lara carried out under certain circumstances for PLosses of sonalaing information necessary for Although 7.5. industry was satisfied with the flat compromise rescued by the Council, it remains to be seen merder the decompilation exemption will deny adequate Protection for 3.3. rigaticiders. 3.5. Direct Investment Position Abroad (EC) Source: U.S. Department of Commerce, Survey of Current Business August 1991, Vol. 71, No. 8, Table 11.3 EUROPEAN COMMUNITIES hopes to extend coverage to the four sectors covered by the EC directive and thereby escape its discriminatory impact. 6. Export Subsidies Policies Agricultural Subsidies: Export subsidies (export restitutions or refunds) are widely used by the EC to offset the competitive disadvantage to EC agricultural exports manifested by high EC internal support prices. EC expenditures on export subsidies exceeded $12 billion in 1990, with cereals, beef, sugar and milk and milk products accounting for the lion's share of expense; fruits and vegetables, wine, tobacco, pork, poultry and eggs also receive the benefit of export subsidies. Export subsidies are a very effective supply control tool for the EC, enabling it to dispose of its surplus production at prices that match, and often undersell, U.S. and other exporters' agricultural exports to foreign markets. The impact on world trade is large and growing limited only by EC budget concerns. As a result, disciplining export subsidies remains a central objective for the U.S. in the Uruguay Round negotiations. Industrial Subsidies: In recent years, the EC has taken steps to rein in certain subsidies. Examples include steel, shipbuilding and coal. A major sector where difficulties persist is civil aircraft. In this sector, the United States is continuing its effort to achieve effective discipline on the trade-distorting subsidies received by Airbus. The U.S. estimates that the Airbus Governments, France, Germany, the United Kingdom and Spain, have provided $25.9 billion in subsidies for the development and production of Airbus aircraft. These subsidies have enabled Airbus to ignore normal commercial cost considerations while pursuing world market share at the direct expense of U.S. manufacturers. Despite recent consultations with the European Community and a "conciliation" session pursuant to the GATT Subsidies Code, the issue has not been resolved. If a satisfactory negotiated solution is not reached between the United States and the Community, the United States ill ask a GATT Subsidies Code panel to rule on the matter. Also, in another Subsidies Code case brought by the United States against the Community, a panel is due to make a decision soon on the legitimacy of Germany's Airbus-related exchange rate guarantee scheme. 7. Protection of U.S. Intellectual Property The European Commission is committed to securing a high level of protection for intellectual property rights in the EC. The Commission believes that completion of the internal market will require harmonization of the scope of IPR protection so that trade within the community will not be distorted based on the absence of or inadequate protection of rights in certain member states. The Commission has proposed directives in certain areas where inadequate IPR is seen as hindering development of EC industry (biotechnology patent, patent term restoration for pharmaceuticals, satellite and cable retransmission of copyrighted material), and has adopted EUROPEAN COMMUNITIES directives covering software copyright and semi-conductor topologies. Planned directives will continue to harmonize IPR at the EC level, and eventually community patent, trademark, and industrial design regimes will exist. In the copyright area, the Council is currently considering proposals for directives establishing rental and lending rights and harmonizing neighboring rights, and creating a system for protecting works transmitted by satellite and cable retransmission. It is unclear at this time whether the directives will give full protection to U.S. right holders and whether U.S. film producers and the works-for-hire system will be fully respected. The EC adopted in May 1991 a directive requiring member states to protect software as a literary work within the meaning of the Berne Convention. Member states are required to implement the directive in national legislation no later than January 1, 1993. The directive differs from U.S. law by including a specific exemption from protection for decompilation carried out under certain circumstances for purposes of obtaining information necessary for interoperability. Although U.S. industry was satisfied with the final compromise reached by the Council, it remains to be seen whether the decompilation exemption will deny adequate protection for U.S. right holders. 8. Worker Rights Worker rights are discussed in the individual country sections of the report. Extent of U.S. Investment in Goods Producing Sectors 1990 U.S. Direct Investment Position Abroad (EC) Source: U.S. Department of Commerce, Survey of |