Catherwood LibraryILR School

Following a ruling by the World Trade Organization that a US tax law is an illegal export subsidy, the European Union has given the U.S. a six-month deadline to make progress in repealing the tax breaks or face retaliatory tariffs of up to 100% on over $4 billion worth of U.S. trade goods. The dispute started over five years ago, when the EU complained about an arrangement that allowed American companies to channel export sales through Foreign Sales Corporations, which because they are overseas corporations, pay a lower rate of tax.