- In mid-May 2006, the European Union could re-impose sanctions on selected US products in relation to the WTO dispute on US.
Foreign Sales Corporation/Extraterritorial Income (FSC/ETI) tax provisions.
- The EU had imposed sanctions on 1,608 US products from March through December 2004, in the form of an additional five percent tariff that increased by one percentage point each month.
The EU temporarily lifted these sanctions effective January 1, 2005, when US legislation, the Jobs Creation Act of 2004, came into effect.
But the EU also sought a WTO determination on whether the Jobs Creation Act complies with the WTO Dispute Settlement Body rulings in this dispute.
- In September 2005, a WTO compliance panel ruled in the EU's favor.
The United States appealed this decision. On February 13, the Appellate Body upheld the panel's findings.
This opens the door for EU to impose sanctions on US products.
- Starting in mid-May, the EU could impose $2.4 billion of sanctions in the form of a 14 percent additional tariff on select US exports.
- The attached document contains the EU Council Regulation that provides a list of products on which the EU could apply sanctions.
- The timing and amount (including the products affected) of the sanctions is subject to change depending on consultations with the EU.
The International Trade Administration (ITA) is here to help your US businesses participate fully in the growing global marketplace.
International Trade Administration
marketing@alchempro.com
