Well, if you’re reading this BLOG regularly, this should come as no surprise …
Yahoo! News – EU slaps multi-million dollar trade sanctions on US: “The commission underlined that the level of sanctions is substantially less than the 4 billion dollars allowed by the WTO. The sanctions take the form of import duties starting at five percent, rising by one percentage point per month.
This year they would amount to some 300 million dollars if continued until December
The WTO has ruled that the FSC law flouts global trade rules by allowing thousands of US firms, operating through subsidiaries in offshore tax havens, to benefit from reduced export taxes.
WTO arbitrators agreed with the EU that just over four billion dollars (3.4 billion euros) would constitute ‘appropriate countermeasures’ based on the trade impact of the US policy.
The US administration says the EU decision is regrettable — and insists it is pushing the Congress hard to push through legislation to end the tax breaks ‘as quickly as possible,’ according to a US spokesman. “