united states - tax treatment for "foreign sales corporations"

Second Recourse by the European Communities to Article 21.5 of the DSU

Request for Consultations

            The following communication, dated 5 November 2004, from the delegation of the European Communities to the delegation of the United States and to the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 21.5 of the DSU.

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            The European Communities hereby requests the United States of America to enter into consultations under Articles 4 and 21.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the "DSU"), Article 4 of the Agreement on Subsidies and Countervailing Measures (the "SCM Agreement"), Article 19 of the Agreement on Agriculture and Article XXII:1 of GATT 1994 with respect to the American JOBS Creation Act of 2004 (the "JOBS Act") enacted by the US on 22 October 2004.

            The JOBS Act was intended to implement the DSB recommendations and rulings in case WT/DS108 United States – Tax Treatment for "Foreign Sales Corporations" and United States – Tax Treatment for "Foreign Sales Corporations" – Recourse to Article 21.5 of the DSU by the European Communities but fails to do so properly and is inconsistent with the same provisions of the WTO Agreement as did the predecessor legislation.