Didn't some people on this list discuss government subsidies recently?

From: http://news.bbc.co.uk/hi/english/business/newsid_655000/655071.stm

The European Union has won a major trade case against the United States in
the World Trade Organisation. The WTO has ruled that the US is unfairly
subsidising the exports of its multinational companies by giving them a
special tax break - the so-called foreign sales corporation tax exemption
(FSC). US officials have reacted angrily to the ruling, but promised not to
ignore the findings. A spokesman for the European Union said Brussels was
open for talks with the US administration to find a solution acceptable to
both sides.

The FSC tax break is worth about $3bn a year to US companies. It allows big
exporters like Microsoft and Boeing to shield some of their export income
from US taxes by setting up a foreign subsidiary. The programme was
established in 1984 to offset the tax breaks European companies get when
they sell outside the EU.

EU Trade Commissioner Pascal Larny welcomed the decision. "The FSC (Foreign
Sales Corporation) system, and its predecessor, have had a major negative
effect on international trade to the detriment of European companies," he
said.

Under international trade rules, the United States has until 1 October to
repeal the tax law. If it does not, the EU would be allowed to introduce
penalty tariff rates on a range of US products to compensate for any losses
caused by the illegal US tax subsidy.


Personal note: I had to get this information from the BBC's website; I could
not find it on CNN.com, ABCNews.com or MSNBC.com. I did find mention of it
on wallstreetjournal.com and nytimes.com, but on both sites the article is
only available to registered users. Why can I find this news on European
news sites, but not on some major US news sites?


Jeroen

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