Spain Comes out Against EC Fats tax

Spain has joined the group of European Community countries opposed to the proposed tax on marine and vegetable oils and fats, diplomatic sources said.

They said the Spanish position was clarified at a joint meeting here of EC finance and agriculture ministers to discuss the budgetary situation surrounding this year’s EC farm price negotiations.

Previously, West Germany, Britain, Portugal and Denmark have declared themselves against the tax with Spain’s position unclear, the sources said.

The sources said Spanish junior finance minister Guillermo de la Dehesa said Spain was against the tax because of its implications for world trade talks within the General Agreement on Tariffs and Trade and because it was discrimatory by excluding butter.

They said the countries now opposed to the tax have far more votes than needed under the EC’s majority voting system to block the proposal.