EU Threatens Sanctions on U.S. Goods

The European Union (EU) has advised the World Trade Organization (WTO) today that it would reintroduce trade sanctions against the U.S. unless it complies with a ruling condemning tax breaks for domestic companies operating overseas.

The announcement comes shortly after a WTO panel upheld a decision condemning the tax breaks. The EU sanctions will include everything from textiles to automotive parts.

The law gave tax exemptions on part of the income of several U.S. exporters, including companies like Microsoft Corp., Boeing Co. and GE. EU representatives estimate the tax advantages will benefit airplane maker Boeing alone by more than $615 million over the next decade.