News

WTO rules tax breaks for US exporters are illegal

15/01/2002

The World Trade Organisation (WTO) appellate body has ruled in favour of a complaint by the European Union (EU) that export subsidies provided by the US for exporting companies under the Foreign Sales Corporations (FSC) Replacement Act are illegal. The EU is now calling on the US to comply with the WTO’s decision as soon as possible. The ruling of the appellate body upheld the findings of a previous WTO Panel and is final. The report of the ruling said that the FSC Replacement Act "constitutes an export subsidy incompatible with WTO rules".

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