US Democrats to renew push to confront Opec at WTO

09 Jul, 2004

Three Democratic lawmakers said Wednesday they will renew a push in Congress to require the US Trade Representative to file a complaint with the World Trade Organisation against Opec for its crude oil export quotas.
Sen. Frank Lautenberg of New Jersey, Sen. Dick Durbin of Illinois and Rep. Peter DeFazio of Oregon said their proposed legislation aims to halt the Organisation of Petroleum Exporting Countries' "current illegal operations" that have contributed to record-high gasoline prices this year.
Without Republican support in the Republican-controlled House and Senate, the Democrats' bill is unlikely to make much headway.
The three lawmakers said in a statement they will hold a news conference on Thursday to release a report outlining Opec's alleged violations of international trade law.
Democrats earlier this year urged the White House to use the WTO to force Opec to boost its oil production, but the administration said it does not believe the cartel's quotas can be challenged at the WTO.
Saudi Arabia, the most influential Opec member, is not a member of the WTO although it hopes to wrap up negotiations to join the Geneva-based group later this year. Other key Opec members - Iran, Libya, Iraq and Algeria - also do not belong to the WTO.
Some trade experts said a case could be filed against those Opec members that also belong to the WTO by claiming a violation of a rule that prohibits countries from taking measures to restrict exports. But other experts say there has been an unwritten agreement for decades keeping most oil issues outside of international trade rules.

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