NFTC Disappointed in WTO Ruling on U.S. Foreign Sales Corporation
Washington DC – The National Foreign Trade Council today expressed disappointment in the World Trade Organization (WTO) ruling allowing the European Union to impose sanctions on U.S. exports worth $4 billion in retaliation over a provision of U.S. tax law known as the Foreign Sales Corporation (FSC).
“We’re obviously disappointed with the number they chose,” said Bill Reinsch, President of the National Foreign Trade Council. “The imposition of sanctions would adversely affect trade in the U.S. and Europe at an inopportune time for both economies. It is important that both sides of the Atlantic continue to work together to prevent a further threat of retaliation.”
In March of 2000, the WTO found that the U.S. provision was inconsistent with WTO rules. The United States passed a new law in November 2000. The EU challenged the new U.S. law. In January 2002, the WTO found that the new law still does not comply with U.S. WTO obligations.