NEWARK, N.J. – As OPEC nations announce steps to boost world oil prices, Senator Frank R. Lautenberg (D-NJ) called on President Bush to file an action in the World Trade Organization against the cartel’s plan to limit crude oil production, which violates Article XI of the General Agreement on Tariffs and Trade (GATT).

OPEC President Edmund Daukoru announced today in Nigeria that the cartel has agreed on a production cut of one million barrels a day to be implemented at the end of the month. Daukoru’s announcement sent light sweet crude and Brent crude futures higher on world exchanges.

However OPEC’s action conflicts directly with Article XI of GATT, which states:

“No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licenses or other measures, shall be instituted or maintained by any contracting party on the importation f any product of the territory of any other contracting party or on the exportation or sale for export of any product destined for the territory of any other contracting party.”

Despite OPEC’s illegal activity, President Bush has thus far refused Senator Lautenberg’s calls to bring a WTO action against OPEC nations for violating GATT. In light of OPEC’s announcement today, Senator Lautenberg said that the need to bring an action against OPEC is greater than ever.

“Just as gasoline prices have finally started to come down, we see OPEC making moves to shoot prices back up again,” said Senator Lautenberg. “If President Bush refuses to stand up to these big oil interests, then he is refusing to stand up for American families. The President must immediately file a complaint in the WTO to stop this manipulation of the markets.”

In 2005, Lautenberg introduced legislation in the U.S. Senate, S. 752, the “OPEC Accountability Act,” to compel the President to use the WTO to bring certain members of OPEC in line with international trade law and abandon the use of quotas. The current quotas being forced on the rest of the world by OPEC countries like Saudi Arabia and Hugo Chavez’s Venezuela artificially boost the price of gasoline.

A detailed report on OPEC’s violation of WTO rules is at the following link:

http://www.lautenberg.senate.gov/documents/foreign/OPEC%20Memo.pdf