US, EU To Delay Trade Tax Sanctions
Saturday, September 30th 2000, 12:00 am
By: News On 6
WASHINGTON (AP) â€” The United States and the European Union reached agreement Saturday to delay imposition of a possible $4 billion in economic sanctions against the United States in a trade dispute involving tax breaks for American exports.
The deal was announced by the Clinton administration, which had been negotiating against a midnight Saturday deadline for overhauling U.S. tax laws to come into compliance with the adverse ruling from the World Trade Organization.
Under the procedural agreement, Congress will have until Nov. 1 to pass the legislation. The EU agreed not to impose any penalties until a separate WTO panel can rule on whether the new legislation complies with WTO rules.
``The United States and European Union today demonstrated a commitment to avoid escalating trans-Atlantic trade tensions and managing this WTO trade dispute responsibly,'' U.S. Trade Representative Charlene Barshefsky said in a statement.