Snow Urges Congress To Act Quickly In Replacing Export Subsidies

by Mike Godfrey, Tax-News.com, Washington

05 February 2004

Treasury Secretary John Snow on Tuesday attempted to press home the importance of avoiding European Union sanctions, and urged US lawmakers to find a quick solution to the dispute over subsidies for exporters.

"The administration is committed to being in compliance with the WTO," commented Mr Snow before the House Ways and Means Committee. "It is critical that we act and act soon to avoid those sanctions," he urged.

Congress now has less than one month to repeal the Extra-Territorial Income Exclusion legislation ruled illegal by the WTO. Although lawmakers are currently considering two replacement bills that will give US exporters similar advantages, it is unlikely that either of these measures will make the statute book before the EU’s March 1 deadline.

However, Rep. Phil Crane (R-Ill), of the Ways and Means Trade Subcommittee, warned of the damaging economic consequences of a trade war with the European Union, and argued that a quick solution can be found to avoid this.

"This is something we can accomplish simply with a lowering of the corporate tax rate," suggested Crane.

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