ACP STATES SAY EC OILS TAX PLAN BREAKS ACCORDS Developing countries said the European Community (EC) would breach two international agreements if it went ahead with its plans for an oils and fats tax. Ambassadors to the EC from African, Caribbean and Pacific (ACP) states told a press conference the tax would hit the exports of 26 ACP countries. They said the EC failed to follow consultation procedures laid down in the Lome Convention which regulates relations between ACP states and the bloc for moves which could affect trade between the two sides. They also said the EC would be in breach of an undertaking not to bring in new protectionist measures during the current Punta del Este round of world trade negotiations being held under GATT (General Agreement on Tariffs and Trade) auspices. The EC Commission has proposed a tax of up to 330 European currency units (Ecus) a tonne on both imported and EC-produced vegetable and marine fats for human consumption, which could raise up to two billion Ecus a year. EC farm ministers, who would have to approve such a tax, are split on the issue and are expected to decide it at a marathon meeting on EC farm prices beginning in Luxembourg on June 15. Jamaican ambassador Leslie Wilson said ACP countries are convinced this would lead to EC industry substituting products made within the bloc for oil and fat imports. The ACP estimates this would result in a fall of 160 to 185 mln Ecus in its member country exports. "We can't believe the EC would willingly take measures to undermine our countries, but such would be the impact of these measures," Wilson said. The U.S. and Malaysia say their exports would also be hit by the proposed tax and they may take retaliatory action if it is approved. Wilson said the ACP would take such steps only "as a very last resort," but added that the ACP is in touch with other countries which oppose the plan. Wilson, who was chairing the news conference, made it clear Jamaica itself would not be hit by the tax as it does not export oils and fats. Among the worst hit countries would be Ivory Coast, Senegal, Nigeria and Papua New Guinea, the ACP says.