EU customs duties lifted.
The decision follows a Council Regulation adopted Jan. 31, 2005. Trade sanctions were imposed on the United States in reply to a U.S. law that allowed foreign sales corporations (FSCs) to benefit from export subsidies totaling more than $4 billion yearly since 2000.
The duties will be suspended until Jan. 1, 2006, or 60 days after review by the World Trade Organization (WTO) to determine whether the FSC successor legislation, the American Jobs Creation act, is compatible with WTO rules.
The FSCs were found by the World Trade Organization in 2000 to be a direct subsidy to exports. In May 2003, the EU was authorized by the WTO Dispute Settlement Body to impose countermeasures of up to a level of $4 billion in the form of additional duties of imports of certain products from the United States.
The new EU regulation aims at encouraging the United States to comply fully with WTO rules and to remove the remaining trade distortion created by subsidies granted since the adoption of the FSC Act.
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|Title Annotation:||BIR REPORT|
|Date:||Apr 1, 2005|
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