• We understand that the WTO today has authorized a list of
products the EU may retaliate on regarding the FSC/ETI dispute in the amount of four billion
• This is part of the process and the EC is acting within their
rights. As we've made clear, the United States intends to comply with our international
obligations, we are continuing to consult with the EC, and the Executive branch is working with Congress to
comply with these obligations.
• Congress is increasingly focused on the importance of the
FSC/ETI issue, and both houses of Congress are working to address the FSC/ETI issue.
• Retaliation is a double edged sword with economic consequences
on both sides of the Atlantic. The EC has indicated that they would prefer compliance over
retaliation. We prefer this as well because U.S. exporters, including European firms with operations
in the U.S., and European consumers will bear the brunt of any retaliation.