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The Office
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2004 /
October /
10/14/2004 | Zoellick Thanks Congress for FSC Bill
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USTR Zoellick Thanks Congress For Passing FSC-ETI Bill |
Contact: Richard Mills/Neena Moorjani (202) 395-3230 |
10/14/2004 |
WASHINGTON – U.S. Trade Representative Robert B. Zoellick today thanked
Congress for removing the Foreign Sales Corporation/Extra-Territorial Income
(FSC-ETI) tax provisions of the tax code, within the larger tax measure that was
approved over the weekend and on Monday.
The ending of the FSC-ETI provision was necessary to bring the United States
into compliance with its international trade obligations, after the ruling in
the World Trade Organization (WTO).
"I want to thank Congress for removing these FSC-ETI provisions of the tax
code so that the United States can meet its international trade obligations. In
particular, I want to thank House Ways and Means Committee Chairman Bill Thomas
and Senate Finance Committee Chairman Chuck Grassley, Ways and Means Ranking
Member Charlie Rangel and Finance Committee Ranking Member Max Baucus for their
leadership and perseverance, as well as House and Senate leaders from both sides
of the aisle," Zoellick said. "We recognize the difficulty and complexity of
making tax code changes, and by bringing the United States into compliance with
our international obligations, we believe the concerns that prompted the EU to
bring this action in 1997 have been addressed satisfactorily. We urge Europe to
quickly move to end their tariffs on U.S. exports, so that trade can resume to
the mutual benefit of both sides of the Atlantic."
The European Union has been levying an extra tariff on U.S. exports to Europe
since last March, hurting American manufacturers and exporters. Starting at five
percent, the tariff has been increasing at one percent each month since then. It
is currently at 12%.
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