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Juggling 'Nuclear' Trade Bombs.(Brief Article)
Last year, U.S. trade Representative Robert Zoellick warned the European Union that if it imposed sanctions in the ongoing EU-U.S. tax dispute, it would be the equivalent of detonating a "nuclear bomb" on their relationship. So, when the World Trade Organization made a landmark ruling last week that long-disputed U.S. corporate tax breaks were an illegal subsidy, it seemingly gave the EU the right to detonate that bomb. If the United States refuses to dismantle its subsidies, EU Trade Commissioner Pascal Lamy can impose $4 billion in retaliatory tariffs against U.S. exports.
Analysts fear that the dispute could worsen the already looming transatlantic trade tensions. President George W. Bush has recently threatened to impose stiff tariffs on U.S. steel imports. That could, in turn, prompt the EU to continue its own illegal ban on genetically modified food, or to once again attack the United States' Helms-Burton Act, which punishes Europe for investing in Cuba. Analysts and columnists the world ...
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Source: HighBeam Research, Juggling 'Nuclear' Trade Bombs.(Brief Article)