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WTO - Who's in charge of Collecting Taxes
As the WTO attempts to fine the US 4 Billion Dollars (that's about 400 for each of us Americans, payable by our taxes). One wonders what our sovereignty entails? Aren't WE the only body able to levy taxes?
Source: TheTip, 2002-09-30
Candidate: WTO
WTO Gives EU Go Ahead for Sanctions on US
Fri Aug 30,12:52 PM ET
By Richard Waddington and Patrick Lannin
GENEVA/BRUSSELS (Reuters) - The European Union ( news - web sites) won approval on Friday to slap a record $4 billion in sanctions on the United States over illegal U.S. export tax breaks, scoring a key victory against its giant trading partner.
The award, by a special panel of arbitrators at the World Trade Organization ( news - web sites) (WTO), crowned a five-year feud over the U.S. scheme and comes at a time when EU-U.S. trade ties are under the cloud of another bitter battle over steel.
But in a sign neither side wants the disputes to get out of hand, the EU said it would hold off from sanctions as it watched the progress Washington made in scrapping the scheme.
The United States said President Bush ( news - web sites) was working with Congress to comply with WTO rules and saw the sanctions ruling being made irrelevant by its efforts to change the law.
"We find that the amount of $4.043 billion...can be considered to be a reasonable approximation of the actual value of the subsidy," the WTO panel said in an announcement that had been anxiously awaited by both sides for months.
The finding is by far the highest level of retaliation authorized since the Geneva-based international trade body was established in January 1995.
The Foreign Sales Corp (FSC), as the scheme is called, has benefited such firms as Boeing and Microsoft.
The $4.043 billion figure met exactly the EU calculations for trade losses it said companies in the 15-state bloc were suffering as a result of the disputed tax concessions. U.S. officials had argued just under $1.1 billion would be fairer.
But the panel said that on the basis of figures provided by the United States, it calculated the annual damage to the EU at $3.74 billion, while the EU's numbers pointed to $5.33 billion -- suggesting it could have awarded Brussels even more.
EU SATISFIED, U.S. UPSET
"We are satisfied by today's decision that makes the cost of non-compliance with WTO crystal clear," said EU Trade Commissioner Pascal Lamy in a statement.
"The arbitrators have endorsed the EU's request, i.e. they have given us an amount of potential countermeasures which will create a major incentive for the U.S. to eliminate this huge illegal export subsidy," he said.
His U.S. counterpart was unhappy.
"I'm disappointed the (WTO) arbitrator did not accept the lower figure put forward by the United States," U.S. Trade Representative Robert Zoellick said in a statement.
"I believe that today's findings will ultimately be rendered moot by U.S. compliance with the WTO's recommendations and rulings in this dispute," he added.
Commission trade official Nikos Zaimis said the European Union sought fast implementation of the WTO ruling.
"We know that they (United States) have (congressional) elections in November. This is an important date for the future. Of course, we would like to see the U.S. comply before that date," he told a news conference.
WTO CHIEF CALLS FOR IMPROVED TRADE TIES
The disputes, including one over steel still rumbling on, have come at a time when both the EU and the United States are supposed to be leading global liberalization trade talks.
WTO chief Mike Moore, about to step down, called on both sides to get over their conflicts.
"I urge both parties to continue to cooperate and work toward resolving this dispute and the others between them in an amicable and constructive fashion," he said.
"The EU and the United States are among the most important members of this organization and both hold a special responsibility to ensure the continued health and soundness of (the) WTO and (the) global trading system."
The EU has said that before taking any sanctions action, it will consult with European ind
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User Originated Comments:
From: Jam Asian
2007-07-18 00:00:00
i totally agree with mr.jawed aziz about feudalism
as a curse and should be eradicated in order to
get rid of poverty from underdeveloped countries.
From: Linda
1999-11-30 00:00:00
do i understand this? our government offered
american steel industry tax incentives to the tune
of $4billion, at tax payers expense. the industry
pocketed the money and turned around and made
$4billion selling its product to the eu. the eu
sued and is now in position to collect $4billion
from the us - again, at tax payer expense. is that
right?
From: JAWED AZIZ
1999-11-30 00:00:00
feudalism is curse. it should be vanished
completely from the horizon of earth.because it
gives birth to poverty.
From: JAWED AZIZ MEMON
1999-11-30 00:00:00
if wto wants to get optimum results of successful
trade liberalization it should vow to eradicate
feudalism from underdeveloped countires.
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