Washington, 16/11/2000 (Agence Europe) - The reform of the Foreign Sales Corporations regime, condemned by Geneva, "fully addresses the WTO's panel's findings and should put an end to this matter", said the US Trade Representative, who welcomed the adoption of the new legislation by Congress (see yesterday's EUROPE, p.11). According to Charlene Barshefsky, "the strong bipartisan support to pass the FSC repeal and replacement legislation demonstrates the United States' commitment to abide by its WTO obligations". "We believe that this legislation addresses the concerns raised by the WTO Appellate Body and that it will be found to be WTO-compliant", insisted Stuart E. Eizenstat, Treasury Deputy Secretary. He stressed that the "enactment of this legislation will avoid an immediate confrontation with the EU by ensuring that the World Trade Organisation must review the new law before any decision authorising retaliation may be made". "We plan to continue working with the EU to manage this dispute responsibly and to avoid any escalation of tensions that could harm our strong bilateral relationship", he said.
In Brussels, Mr Lamy's spokesperson confirmed that the EU welcomes the adoption of the new US system but maintains its reserve regarding the content.