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Europe hails WTO $4 billion ruling against US on tax breaks
BRUSSELS (September 03, 2002) : European trade officials said on Friday a World Trade Organisation (WTO) award of $4.043 billion in compensatory sanctions against the United States was a major incentive for Washington to scrap a tax break scheme.
"We are satisfied by today's decision that makes the cost of non-compliance with WTO crystal clear," said Trade Commissioner Pascal Lamy in a statement issued by the European Commission.
"The arbitrators have endorsed the EU's request, ie they have given us an amount of potential countermeasures which will create a major incentive for the US to eliminate this huge illegal export subsidy," he said.
The figure is by far the highest level of retaliation ever authorised since the Geneva-based international trade body was set up in January 1995.
The $4 billion figure met exactly the EU calculations for trade losses it said companies in the 15-state bloc were suffering as a result of the disputed tax concessions, granted to US giants like Microsoft and Boeing.
US officials had argued that just under $1.1 billion would be a fairer estimate.
The Commission said it would need to see US compliance with the WTO ruling and would be carefully evaluate progress made on US implementation before taking any countermeasures.
The WTO decision authorises the EU to impose sanctions at the level of $4.043 billion by increasing customs duties on selected products up to 100 percent.
Courtesy Business Recorder
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Pakissan.com;
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