US goods to be sanctioned by EU

THE European Union yesterday announced it had started imposing millions of euro in sanctions on US goods because of Washington’s failure to end export tax breaks.

"We have been left with no other choice than imposing those measures," said EU Commission spokeswoman Arancha Gonzalez in Brussels.

Although the World Trade Organisation (WTO) has authorised €2.1 billion in sanctions the biggest amount ever the EU is taking a graduated approach, hoping to pressure the US Congress to change the legislation while limiting the impact on European companies and consumers.

Ms Gonzalez said the 15-nation EU was hoping the Congress would change the law quickly.

"The day this legislation is passed, the EU will immediately lift its countermeasures," she said.

The US measures were ruled illegal by the WTO two years ago and it authorised the EU to impose sanctions last year.

"The US has not brought its legislation in line with WTO rules. We are therefore left with no choice but to impose countermeasures," EU Trade Commissioner Pascal Lamy said.