The World Trade Organisation has granted the European Union permission to impose multi-billion dollar trade sanctions on the United States. The EU wants the US to end the tax breaks given to US exporters such as Boeing and Microsoft.By shipping their products through tax havens the companies are managing to avoid paying considerable amounts in tax. The WTO says this breaches international agreements.
As a countermeasure, the EU may now impose tariffs on a large number of US products. This could cost the US around four billion dollars, which is about equal to the amount of the tax breaks enjoyed by US corporations.
Radio Netherlands 8 May 2003
