EU won't retaliate.(Brief Article)

KiplingerForecasts, August, 2005

The European Union won't reimpose tough trade sanctions on U.S. goods in a long-standing dispute over a U.S. tax break for American exporters. Congress repealed the break last year, after the World Trade Organization ruled it illegal. But the phase-out period runs through next year, which a miffed EU says is too long.

The WTO OK'd reinstatement of the tariffs on $4 billion in U.S. exports that it suspended after the tax break's repeal. But the EU will pass, figuring it can use the WTO's blessing as leverage in a far-larger dispute over government subsidies to aircraft makers Boeing and Airbus.