EEC Boosts Duties on U.S. Lemons, Nuts

A simmering U.S.-European trade fight heated up Thursday as the Common Market approved higher tariffs on American lemons and nuts in retaliation for U.S. moves to limit imports of European pasta.

The European Economic Community’s governing Council of Ministers, meeting to discuss mainly environmental issues, formally adopted a recommendation from political authorities to slap higher import duties on U.S. lemons and nuts.

The move came just hours after U.S. Vice President George Bush met at EEC Commission headquarters in Brussels with Commission President Jacques Delors to discuss trade and other issues.

Bush and Delors agreed that more high-level contacts were needed to prevent rising U.S.-EEC tensions from triggering a trade war, according to American and EEC officials who spoke on condition that they not be identified.

Call for Retaliation

In Washington, Sen. Pete Wilson (R-Calif.) immediately denounced the EEC decision.

“The decision by the EEC today is unprecedented and demonstrates a complete disregard for the principles and legality of international trade agreements,” he said in a statement.

Wilson, whose state produces both walnuts and lemons, called for retaliation.

“The strongest and most clear-cut signal the President would sent to the EEC that demonstrates the seriousness with which America views this situation would be to immediately increase the duty on wine imported from the EEC,” he added.

California is also a major wine-producing state.

Wilson said that U.S. lemon exports are “understandably small--less than $2 million last year--due to 16 years of discriminatory tariffs” by the EEC.

He said walnut growers will be hurt since they sell 60% of their exports--more than $30 million a year--to European countries.

The decision by the EEC Council of Ministers calls for an increase in import duties on U.S. lemons to 20% and on nuts to 30%. Both commodities currently face duties of 8%.

The increases would take effect only if the Reagan Administration carries through on its plan, announced last week, to raise tariffs on imports of pasta products from EEC countries.

The Administration said it was acting in response to the EEC’s refusal to amend its preferential import agreements with 11 Mediterranean citrus fruit exporters, which the U.S. contends is costing American citrus exporters about $48 million a year in lost business.

The Americans contend that such preferential treatment is discriminatory and violates international trading rules. The EEC says its policy is part of a development plan for the Mediterranean region.

Higher U.S. Tariffs

The EEC estimates that the higher U.S. tariffs on EEC pasta products--nearly all of which come from Italy--would mean an extra $12 million in duties, while the higher EEC charges on U.S. lemons and nuts would give it an extra $7 million to $8 million.

The citrus dispute goes back to 1976, when American citrus growers filed a petition saying that the Europeans were charging lower tariffs on fresh and processed citrus fruit from Mediterranean countries than on the American product. No solution was reached as a result of consultations held under the General Agreement on Tariffs and Trade.