Oilseed alliance complains to EU

The European Oilseed Alliance (EOA) will file a complaint with the European Commission against US soybean subsidies, according to the United States Department of Agriculture (USDA), writes the American Soybean Association​ this week.

The report reveals that the EOA states that their complaint falls under the EU's 'Trade Barriers Regulation', which requires the EU Commission to act upon complaints by citizens or groups that claim to be affected by a trade barrier. The group making the complaint must be shown to be representative of the affected industry.

The EOA allegedly claim that the US is in breach of its Uruguay Round commitments saying that US subsidies exceed the 1992 baseline level and therefore are not covered by the Peace Clause. They claim that this has lowered prices and therefore damaged their interests. Showing damage is required under the Trade Barrier Regulation.

According to the ASA, at this time it is unclear whether or not the EU Commission intends to pursue the complaint. The first formal indication will be after the 45-day period after filing, at which time the Commission will publish their decision about whether or not to open an investigation. Action might include bilateral negotiations or WTO consultations.