Congress Seeks to Head Off EU Dispute on Tax
Financial Times (09/11/00) Vol. 110, No. 10 p.3; Alden, Edward; Bilefsky, Dan

With the United States having lost a World Trade Organization (WTO) ruling on the country's foreign sales corporation scheme, Congress is set to vote this week on tax-code changes designed to work around the problem. The revisions to a tax break that is currently aimed at exporters would facilitate claims of the tax break for offshore production as well. However, the European Union (EU)--which brought the original case in the WTO--says the changes planned by the United States still break WTO rules by providing a subsidy that depends on exports; the EU would file another WTO challenge if the plan passes Congress.

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