U.S. SENATE HITS EC OILS TAX, VOWS RETALIATION

  The Senate voted to condemn the
  proposed European common market tax on vegetable and marine
  fats and oils and said it would result in retaliation.
      The non-binding Senate resolution, a sense of Senate
  sentiment, was approved on a 99 to 0 vote.
      "The administration should communicate to the European
  Community the message that the United States will view the
  establishment of such a tax as inconsistent with the European
  Community's obligations under the General Agreement on Tariffs
  and Trade that will result in the adoption of strong and
  immediate countermeasures," the resolution stated.
      The resolution said the European Community Commission has
  proposed establishing a consumption tax on vegetable and fish
  oils and fats in conjunction with the setting of farm prices
  for the 1987/1988 EC marketing year.
      The Senate said the tax would amount to almost 90 pct of
  the current price of soyoil and "have a restrictive effect" on
  U.S. exports of soybeans and vegetable oils to the EC.
      It would be "blatantly inconsistent" with obligations of the
  EC under the General Agreement on Tariffs and Trade, GATT, the
  resolution said, and "constitute another egregious attempt" to
  impose EC agricultural costs on trading partners.
  

