May 10, 2006


GOP will repeal export-tax breaks under EU threat (Mark Drajem, 5/10/06, Bloomberg News)

U.S. congressional Republicans agreed to revoke a contentious provision of an export-tax break for Boeing and other companies that rely on long-term contracts after the World Trade Organization (WTO) said the measure is illegal.

A provision of a broader tax-bill compromise brokered Tuesday "repeals the rules grandfathering certain binding contracts," according to a summary released by the House Ways and Means Committee. The House of Representatives is likely to vote on the measures as early as today and the Senate by next week.

The repeal would end a dispute between the European Union (EU) and U.S. that dates to a 2000 ruling by the WTO that deemed a 10-year, $50 billion U.S. export-tax rebate illegal.

If much hated transnationalism will help us to open our own and other markets, we Right-wing kooks are only too happy to utilize it. The big enchilada is when it provides political cover for ditching all farm subsidies.

Posted by Orrin Judd at May 10, 2006 8:23 AM

This was the joke with the steel tariffs, too. A strong case can be made that the President actually imposed tariffs of a type that he knew the WTO would rule illegal so that he could repeal them under that cover.

Posted by: John Thacker at May 10, 2006 8:59 AM

Plus, given the latest reports on Boeing's new product lineup versus those for Airbus, dropping the tariffs right now will probably have the least negative effect possible on the company.

Posted by: John at May 10, 2006 9:56 AM