- MarissaBrand
- gordman
- mithunsarker
- Kim07
- Ralph Waldren
EU Sanctions Against The US include Microsoft
Submitted by Wonko The Sane on 2 March, 2004 - 17:46.
When people hear Microsoft, they typically think of another 'm' word, which is the goal and name of a popular board game. But is it just Microsoft that is the problem? Is it just because they are constantly accused of using predatory business practices? Apparently the EU doesn't think so.
...President George W. Bush, who has faced criticism from Democrats for 2.8 million lost manufacturing jobs since he took office, urged lawmakers to redirect the $50 billion in current tax breaks for exporters to "American manufacturers and other job creating-sectors of the U.S. economy."
"I urge Congress to take up and pass ... legislation that reforms the tax code, removes the underlying reason for the tariffs that have been imposed today on American exports, and further advances the competitiveness of American manufacturers and job creators," he said in a statement.
The WTO, in a case dating back to the late 1990s, has repeatedly ruled the U.S. tax breaks amount to illegal export subsidies under international trade rules.
"We understand why the European Union took its action. We regret it, but we understand it," Secretary of State Colin Powell said at a briefing with EU counterparts on Monday.
European External Relations Commissioner Chris Patten told reporters Brussels very much hoped Congress would act quickly so it could end the sanctions "in the next few weeks."
The disputed tax loopholes, valued at about $5 billion annually, benefit a wide cross-section of U.S. exporters, from Boeing, Microsoft and Caterpillar to Eastman Kodak, grain company Cargill and food processor Archer Daniels Midland.
EU Trade Commissioner Pascal Lamy said the EU had "no choice" but to resort to the sanctions after the United States missed a final March 1 deadline for repealing the provisions... (Source: Reuters)