TOBACCO-exporting nations flayed a new US legislation on prohibiting the use of more than 25 per cent imported tobacco by US cigarette manufacturers, even as three leading aerospace companies accused the US of using the current trade negotiations to undermine the General Agreement on Tariffs and Trade (GATT) subsidies agreement for large civil aircraft.

Brazil, Colombia, El Salvador, Guatemala, Thailand, Venezuela and Zimbabwe said the new tobacco law violates GATT rules forbidding countries to stipulate the local extent of domestic production. British Aerospace, Aerospatiale and Deutsche Aerospace are, meanwhile, concerned by US efforts to include civil aircraft subsidies into the broader subsidies code to be adopted during the Uruguay round of negotiations.