The WTO on Monday postponed, for the second time, a decision to assess the largest trade penalties in its history, leaving the biggest dispute between the US and the EU to fester for at least another month.
The EU has asked for US$4.04 billion in penalties against American exports, after rulings by the trade organization that a provision of American tax law violates global trade rules. The proposed penalties are by far the largest in the seven years since the WTO was established in 1995.
The Bush administration has countered with an offer of US$956 million in penalties, and a promise to modify the tax provision in question, which governs "foreign sales corporations," for a second time to make it comply with international trade rules.
The EU argued successfully before the arbitrators that European companies suffered substantial losses because of an unfair subsidy provided to American competitors under the tax provision. More than 5,000 American companies have taken advantage of the tax rule, reportedly including Boeing, General Electric and Microsoft. Under the rule, the companies could exclude much of their export-sales income from American taxes through the use of an offshore entity, which the trade group found was tantamount to a subsidy for the exports.
UPDATED (3:40pm): A suspected gas explosion at a shopping mall in Taichung this morning has killed four people and injured 20 others, as emergency responders continue to investigate. The explosion occurred on the 12th floor of the Shin Kong Mitsukoshi in Situn District (西屯) at 11:33am. One person was declared dead at the scene, while three people were declared deceased later after receiving emergency treatment. Another 20 people sustained major or minor injuries. The Taichung Fire Bureau said it received a report of the explosion at 11:33am and sent rescuers to respond. The cause of the explosion is still under investigation, it said. The National Fire
ACCOUNTABILITY: The incident, which occured at a Shin Kong Mitsukoshi Department Store in Taichung, was allegedly caused by a gas explosion on the 12th floor Shin Kong Group (新光集團) president Richard Wu (吳昕陽) yesterday said the company would take responsibility for an apparent gas explosion that resulted in four deaths and 26 injuries at Shin Kong Mitsukoshi Zhonggang Store in Taichung yesterday. The Taichung Fire Bureau at 11:33am yesterday received a report saying that people were injured after an explosion at the department store on Section 3 of Taiwan Boulevard in Taichung’s Situn District (西屯). It sent 56 ambulances and 136 paramedics to the site, with the people injured sent to Cheng Ching Hospital’s Chung Kang Branch, Wuri Lin Shin Hospital, Taichung Veterans General Hospital or Chung
‘LAWFUL USE’: The last time a US warship transited the Taiwan Strait was on Oct. 20 last year, and this week’s transit is the first of US President Donald Trump’s second term Two US military vessels transited the Taiwan Strait from Sunday through early yesterday, the Ministry of National Defense said in a statement, the first such mission since US President Donald Trump took office last month. The two vessels sailed south through the Strait, the ministry said, adding that it closely monitored nearby airspace and waters at the time and observed nothing unusual. The ministry did not name the two vessels, but the US Navy identified them as the Arleigh Burke-class guided-missile destroyer USS Ralph Johnson and the Pathfinder-class survey ship USNS Bowditch. The ships carried out a north-to-south transit from
RESOLVE: The increased expenditure, if approved by the legislature, would likely see Taipei buying more defense articles from Washington, reducing its trade surplus The government aims to increase defense spending to at least 3 percent of GDP this year, President William Lai (賴清德) said yesterday, hours after US President Donald Trump again threatened tariffs on Taiwanese semiconductors. At a news conference in Taipei following his first high-level national security meeting this year, Lai said the government would propose a special budget this year to increase the nation’s defense spending to more than 3 percent of GDP. “Taiwan must firmly safeguard its national sovereignty, strengthen its resolve for self-defense and bolster its defense capabilities,” he said. The president also vowed to double down on defense reforms and