EU Starts Sanctions on U.S. Goods

[joeunderdog]

BRUSSELS, Belgium - The European Union (news - web sites) said Monday that it has started imposing millions of dollars in sanctions on U.S. goods because of Washington's failure to end export tax breaks.
The retaliatory measures had already been decided months ago and the announcement was expected.

snip

Although the World Trade Organization (news - web sites) has authorized $4 billion in sanctions — the biggest amount ever — the 15-nation European Union is taking a graduated approach, hoping to pressure Congress to change the legislation while limiting the impact on European companies and consumers.

snip

The tariffs penalize the United States for failing to eliminate a tax break that is worth $5 billion a year to U.S. exporters. It was declared an illegal export subsidy by the World Trade Organization and lawmakers agree they must repeal it.


But the House and Senate disagree on tax cuts to replace the old ones. American business, divided between manufacturers hoping for help and multinational companies hoping to modernize American tax laws, cannot agree on a solution.


http://story.news.yahoo.com/news?tmpl=story&ncid=&e=5&u=/ap/20040301/ap_on_bi_ge/trade_fight

Nice to see EU doing a little campaining for the Dems. Chimp's bound to lose friends either way here.

[DoYouEverWonder]

1. Darn

You beat me to it. I'll go edit mine as a dup.

[brokensymmetry]

2. I wonder -

could this be the turning point on the free trade nonsense? I certainly hope so!!