Brussels/Washington, 09/05/2003 (Agence Europe) - After Geneva's go-ahead to the unprecedented sanctions that the EU could levy on US exports in the Foreign Sales Corporation/Extraterritorial Income dispute (see Europe of 8 May, p.6), the White House is stressing that the United States is holding consultations with the European Union and continuing efforts in Congress to comply with the verdict of the World Trade Organisation that their tax subsidy scheme known as FSC/ETI is illegal. "Retaliation is a double-edged sword with economic consequences on both sides of the Atlantic", said White House Spokesperson Ari Fleischer, adding: "The EC has indicated that they would prefer compliance over retaliation. We prefer this as well because US exporters, including European firms with operations in the US, and European consumers will bear the brunt of any retaliation."