THE EU yesterday decided to retaliate against the US in the escalating trade dispute over Washington's attempts to prevent foreign companies from trading with Cuba.
Furious at the decision last week by the US authorities to deny 10 visas to foreign businessmen - and their families - and at legislation allowing the seizure of assets of companies trading with Cuba, EU foreign ministers strengthened a proposed Commission list of sanctions against the US.
These will be implemented in full or part by EU ambassadors as the row continues.
The US legislation, the Helms Burton Act, allows individuals to sue international companies in the US courts if they trade with Cuba.
A product of the previous campaigning of the hard right Cuba lobby in the US, the Democratic administration of President Clinton has been unwilling to veto the legislation or even suspend part of its application.
President Clinton had until midnight last night to decide on exercising a waiver on the final part of the legislation, Title III.
Should he decide against a waiver, and few believe he is prepared to stand up to the Cubans only months from the election, EU ambassadors will consider sanctions based on broad recommendations from the Commission approved yesterday.
Even if Mr Clinton suspends Title III, however, the Justice Department's recent decision to refuse visas to eight Canadians and two British businessmen could lead to retaliation.
EU sources believe the US authorities have long lists of others awaiting a similar fate.
The US decision effectively equates the status of the former deputy governor of the Bank of England, Sir Rupert Tennant Rea, with that formerly allotted to Sinn Fein president Mr Gerry Adams, as persona non grata in the US.
A bewildered Trade Commissioner, Sir Leon Brittan, complained: "We all have strong views about Cuba. Many share the US view of Castro, but the best way to get change is not to clobber your ally.
The Tanaiste, Mr Spring, acting as President of the Council of Ministers, said they were "sending a strong political message to the US that this type of legislation is completely unacceptable".
The ministers agreed to four broad categories of sanctions for consideration by ambassadors:
. legal action through the World Trade Organisation;
. changes in the visa and work permit regulations governing representatives of US companies in the EU;
. the introduction of neutralising legislation to allow the seizure of assets from US companies operating in Europe equivalent to those seized at their instigation in the US; and
. the establishment of a blacklist of companies involved in litigation under Helms Burton against EU companies.
Officials stress that measures, if taken, will be proportionate to US actions, and Sir Leon vehemently denied that the move represented a crisis or the beginnings of a trade war.
But, he said, even allies such as the US and EU had the right to defend themselves. That is what the EU was doing, he said.
Both Irish diplomats and Commission officials were startled by the strength of feeling of ministers.
Most expected them to wait until after President Clinton had made his decision.
They were concerned that should US actions on this issue go unanswered, other "extra territorial" legislation in the pipeline from Washington, targeting firms dealing with Iran and Libya, would be even more difficult to resist.
