The US yesterday urged the World Trade Organisation (WTO) to limit to $956 million (€1,097 million) the value of US goods facing potential European Union sanctions as a result of a dispute over export taxes.
In a brief on its website, US trade officials say the EU's request to impose retaliation on US goods worth up to $4.043 billion greatly exceeds the damage done to EU trade interests in the case.
A WTO dispute settlement panel ruled in January that United States tax breaks for exporters such as Boeing and Microsoft amounted to an illegal export subsidy. It was the fourth such ruling against the US since the EU first brought the issue to the WTO in 1997.
The Bush administration and Congress face the task of making major changes to the US tax code to comply with the ruling.
A WTO arbitration panel is moving toward a decision by April 29th on the amount of US goods that the EU can hit with punitive duties.
US trade officials told a briefing for reporters that their estimate of $956 million was based on the EU's share of global goods production, excluding the US. Using that figure, the Bush administration the calculated the negative impact the US tax break had on EU goods' prices.
- (Reuters)
