Amerika stopt met exportsubsidie na veroordeling WTO en handelsdruk EU (en)
On 11 October 2004, nearly four years after the expiry of the deadline established by the WTO, the US Congress has adopted a Bill repealing the FSC/ETI legislation. The WTO has repeatedly condemned the FSC/ ETI which provides WTO-illegal subsidies to US exporters to the tune of $US 4 billion per year. The Bill, however, provides that FSC/ETI benefits will still be available to US exporters up to the end of 2006. Following its adoption by Congress, the Bill will enter into force once the US President has signed it. EU Trade Commissioner Lamy said: "I am pleased that Congress has finally taken this step towards US compliance with the WTO ruling. It vindicates the EU's patient but firm approach. Our objective throughout has been to obtain the withdrawal of these illegal subsidies by introducing progressively rising countermeasures. We will now carefully study the details in the final compromise between both chambers, in particular regarding transition periods, grandfathering clauses, as well as all other relevant fiscal provisions."
Background
In subsequent rulings by a Panel and the Appellate Body, the WTO found the FSC to constitute an illegal export subsidy under both the Subsidies Agreement and (in relation to agricultural products) the Agriculture Agreement. The US was then given until 1 November 2000 to withdraw the FSC scheme.
On 15 November 2000, President Clinton signed the ETI Act, which meant to replace the FSC. The ETI Act, however, did not modify the substance of the export subsidy scheme and as a result the EU challenged it before the WTO. In January 2002, the WTO confirmed that the ETI Act also constituted a prohibited export subsidy and that the US had not, therefore, complied with its previous ruling.
Consequently, on 7 May 2003 the WTO endorsed the EU request for countermeasures for a level roughly equal to the estimated annual US subsidy (i.e. US$ 4 billion). The EU had, however, avoided any immediate recourse to retaliation so as to give a reasonable time for the US Administration and Congress to adopt the necessary legislation for the repeal of FSC (ETI).
The Council Regulation imposing countermeasures was published on 17 December 2003 in OJ L 328 p.3. With the clear objective of obtaining withdrawal of the US measures, it provides for a gradual imposition of countermeasures as from 1 March 2004 at the level of 5%, followed by automatic, monthly increases of 1% up to a ceiling of 17% to be reached in March 2005. The targeted products cover a wide variety of sectors (e.g. steel, textiles, paper) with the exception of the civil aircraft sector.
The exact description of the products can be found at:
http://europa.eu.int/eur-lex
Among the major beneficiaries of the FSC are: Boeing, Caterpillar, General Electric, Microsoft, Intel, Motorola. As a way of an example, Boeing, the major beneficiary, has received an average of $US 178 in the period 2001-2003 while total benefit from 1992 through 2003 amounts to over $US 1,6 billion.
It is clear that the FSC system grants a considerable competitive advantage to U.S. manufacturers, to the detriment of their EU competitors, as the WTO has repeatedly ruled.
For further information see: IP/04/636, IP/04/769, IP/01/1214, MEMO/04/40
DG TRADE website: