Brussels, 22/04/2003 (Agence Europe) - On Wednesday the European Commission is expected to indicate what sanctions it will impose against the USA in the WTO "Foreign Sales Corporation" (FSC) dispute. The list of US products subject to "sanctions" is expected to be submitted for WTO approval during the next meeting of the dispute reconciliation body in Geneva at the beginning of May.
At the end of August 2002, the WTO authorised the EU to go ahead with sanctions up to USD 4.043 billion on US products in compensation for the maintaining of the FSC tax subsidy system, which had been condemned by a panel (see EUEOPE 31 August p 8). The US administration made a commitment to comply with the WTO conclusions but the process stalled in Congress.
Member States have outlined a list of products on which customs duties will be increased on the basis of proposals presented in February by the Commission (EUROPE 27 February, p 8). Commissioner Pascal Lamy will be indicating on Wednesday to the college that the procedure is at present terminated in Member States and at the Commission. A decision is not necessary for submitting the list in Geneva. On the other hand, a new formal decision from the Council will be needed to effectively apply sanctions.