USTR - USTR Zoellick Thanks Congress For Passing FSC-ETI Bill
Office of the United States Trade Representative

 

USTR Zoellick Thanks Congress For Passing FSC-ETI Bill
Contact: Richard Mills/Neena Moorjani (202) 395-3230 10/14/2004


WASHINGTON – U.S. Trade Representative Robert B. Zoellick today thanked Congress for removing the Foreign Sales Corporation/Extra-Territorial Income (FSC-ETI) tax provisions of the tax code, within the larger tax measure that was approved over the weekend and on Monday.

The ending of the FSC-ETI provision was necessary to bring the United States into compliance with its international trade obligations, after the ruling in the World Trade Organization (WTO).

"I want to thank Congress for removing these FSC-ETI provisions of the tax code so that the United States can meet its international trade obligations. In particular, I want to thank House Ways and Means Committee Chairman Bill Thomas and Senate Finance Committee Chairman Chuck Grassley, Ways and Means Ranking Member Charlie Rangel and Finance Committee Ranking Member Max Baucus for their leadership and perseverance, as well as House and Senate leaders from both sides of the aisle," Zoellick said. "We recognize the difficulty and complexity of making tax code changes, and by bringing the United States into compliance with our international obligations, we believe the concerns that prompted the EU to bring this action in 1997 have been addressed satisfactorily. We urge Europe to quickly move to end their tariffs on U.S. exports, so that trade can resume to the mutual benefit of both sides of the Atlantic."

The European Union has been levying an extra tariff on U.S. exports to Europe since last March, hurting American manufacturers and exporters. Starting at five percent, the tariff has been increasing at one percent each month since then. It is currently at 12%.

 
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