Banana wars forecast after tax verdict due this week

The US is awaiting an the verdict of an appeal on a tax shelter system foundillegal by the WTO.

The European Union charges that so-calledforeign sales corporations illegally benefit American companiessuch as Boeing and General Motors to the tune of about$2.5 billion a year, Bloomberg reported today.

P> If the USloses the appeal, it would be open to billions of dollars worthof European sanctions.

Analysts quoted by Bloomberg said that would have a far greater impact thanrecent WTO rulings in favor of the US in beef and bananadisputes with the EU, which have prompted the US to impose morethan $300 million in tariffs on European goods.

‘It would be exceedingly complicated for the EU and theUS to do a deal in practice,’ David Woods, a former WTOspokesman is quoted. ‘It’s difficult to imagine it working because there’stoo much sensitivity politically on the beef and banana issues.’

WTO to open up markets

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