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Europe Daily Bulletin No. 8030

22 August 2001
GENERAL NEWS / (eu) eu/united states/wto
WTO panel confirms illegality of new US tax exemption system for exporting countries

Brussels, 21/08/2001 (Agence Europe) - The World Trade Organisation (WTO) confirmed on Monday that the new US legislation on the tax exemption scheme in favour of exporting companies (FSC, Foreign Sales Corporations) is a prohibited export subsidy (see EUROPE of 25 June, p.9). The report will be adopted at the latest by 19 October unless the US decides to appeal against its findings. The panel's findings mean the US will have to make "wholesome changes" to the FSC Replacement Act to bring...

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