Time running out on US tax breaks, Lamy warns (EU will sanction)

[papau]

http://story.news.yahoo.com/news?tmpl=story&ncid=1504&e=6&u=/afp/20040219/bs_afp/eu_us_wto_trade_dispute_040219183948

Time running out on US tax breaks, Lamy warns

BRUSSELS (AFP) - EU Trade Commissioner Pascal Lamy warned that the United States faces a race against time to thwart multi-million-dollar sanctions over illegal tax breaks for US exporters.

But he played down talk of a new trade war erupting unless the US Congress failed to repeal the Foreign Sales Corporation (FSC) law in time to avoid the World Trade Organisation-backed sanctions by a March 1 deadline.

"It's a race against the clock," Lamy told reporters, noting that measures to repeal the FSC law were making only slow progress through both houses of Congress.

The EU is set to impose trade tariffs starting at 200 million dollars (164 million euros) from March 1 unless the FSC tax breaks -- which have been ruled illegal by the WTO -- are scrapped.

The duties, on US goods from meat and paper to nuclear power parts and semi-precious stones, will rise by 40 million dollars a month after March until the FSC regime is ended. <snip>

[LeftCoast]

1. I sure hope they "target" those sanctions like they did last time!

<eom>

[Gin]

2. The "God" worshiped by this government and country is "MONEY."

That will be our downfall. It won't be bombs or explosions..it will be the economy collapsing for one reason or another.

Osama gave us a preview of coming attractions by targeting the financial symbol. Nothing has changed...and it's gotten worse.