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Friday 27 February 2004
EU to impose sanctions on US
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The European Union has said that it will put five percent duty on exports from the United States from Monday. This will cost American business hundreds of millions of pounds. It is because of claims that unfair help is given to American firms by the United States government. This report from Steven Evans: |
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The trade dispute between America and Europe has been a war of words so far with tariffs threatened but not imposed. That will now change. The World Trade Organisation which polices world trade has ruled that a tax break given to American exporters, like Boeing and Microsoft gives them an illegal unfair advantage.
The EU's trade commissioner, Pascale Lamy, has now told American legislators on a visit to Washington that the tariffs will be imposed on Monday. An extra five percent tax will be put on some American exports with the rate rising the longer Congress and the Senate refuse to change the law. The EU decision gives American lawmakers a dilemma. With jobs an issue there will be grassroots political pressure not to back down to an international body like the WTO or to what they will see as European politicians.
BBC North America business correspondent, Steven Evans
Listen to the words
trade dispute
a disagreement about buying and selling goods
tariffs
tax on goods coming into a country
threatened
if you threaten someone, you warn that you will make problems for them
imposed
if you impose something, you force someone to accept it
polices
if an organisation polices something, it makes sure that no rules are broken
tax break
permission to pay less tax
legislators
people who make the laws
dilemma
difficult situation in which you have to choose between two or more alternatives
grassroots
the ordinary people in an organisation rather than its leaders
back down
if you back down, you decide not to do something you had threatened to do
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