Brussels, 09/09/2002 (Agence Europe) - In the Official Journal on Friday, the European Commission will publish a detailed list of US products that it will sanction with surcharges of 100% if the USA maintains its tax-breaks for exports, despite the numerous condemnations at Geneva of this scheme also known as the Foreign Sales Corp (FSC).
It is a fine-tuning of the list submitted to the global trade body in November 2000 and revises the "chapter headings" and categories that are targeted (see EUROPE 2/3 September p 10). The new list keeps several hundred export products (steel, agri-food, textiles, stationery, cosmetics, chemicals and electronics etc.) which represent less than 20% of imports needed by European industry, with the idea being to avoid the "boomerang" effect as much as possible (namely reprisals against US suppliers). The recommendations will establish a 60 day consultation period, during which Member States (which received the document last Thursday in Brussels and on Monday by E-mail in the other capitals) and industry will be able to establish their comments and possible objections. The list will have a financial impact of around EUR 12 - 4 bn and will be finalised and then notified in Geneva.
Speaking in Washington on Friday where he was asking part in a US and Irish business leaders summit, European Parliament President Pat Cox explained, "I don't believe there will be a definitive list on this (sanctions) before November". He declared that the Union would, "not rush to impose sanctions" and that its main concern was things were done according to the book and not sanctions. While welcoming the efforts in this sense by the Bush Administration and by Bill Thomas, President of the influential "Ways and Means Committee" of the Chamber (which is also behind the draft reform currently being discussed), Mr Cox pointed out that he efforts appeared to be, "stuck in the congressional conveyor belt".