WRITTEN QUESTION P-0809/00 by Harlem Désir (PSE) to the Commission. Condemnation by the WTO's body of appeal of the tax treatment of foreign sales corporations (FSCs) in the USA.
Date: 2000-03-10
Institutions: European Parliament, Provisional data
Subjects: Dispute Settlement Body, European Union, United States, World Trade Organisation, export tax, tax exemption, trade dispute

21.11.2000

EN

Official Journal of the European Communities

C 330 E/215

within the Community (1) provides that (cid:145)A worker who is a national of a Member State may not, in the
territory of another Member State, be treated differently from national workers by reason of his nationality
in respect of any conditions of employment and work, in particular as regards remuneration, dismissal,
and should he become unemployed, reinstatement or re-employment(cid:146).

According to the information available to the Commission, the protection against individual dismissals in
Belgium depends, in some cases, on the earnings of the individual employee. For employees above a
certain earnings ceiling the protection against dismissal is agreed in the individual contract of employment.

(1) OJ L 257, 19.10.1968.

(2000/C 330 E/250)

WRITTEN QUESTION P-0809/00

by Harlem DØsir (PSE) to the Commission

(10 March 2000)

Subject: Condemnation by the WTO(cid:146)s body of appeal of the tax treatment of foreign sales corporations

(FSCs) in the USA

On 24 February 2000 the WTO(cid:146)s body of appeal published its report on the tax treatment of foreign sales
corporations (FSCs) in the USA. This report upholds the condemnation of the tax arrangements under
which some 50 % of American exports benefit from a tax refund which is tantamount to an export subsidy
totalling some $ US 4 billion annually. Although European companies are not the only ones affected, they
are among those hardest hit.

Will the Commission say why, having condemned these practices, the WTO has not fixed the amount of
compensation due to the European Union and why the Commission itself which is responsible for
protecting the Union(cid:146)s commercial interests has failed to take any action vis-(cid:224)-vis the United States to
obtain compensation, bearing in mind that the latter is continuing to take retaliatory measures against the
European Union over bananas and beef treated with hormones and the WTO itself has acknowledged that
the commercial losses incurred by the EU are far higher?

Answer given by Mr Lamy on behalf of the Commission

(30 March 2000)

Under the World Trade Organisation (WTO) ruling on Foreign Sales Corporations (FSC), the United States
have until 1 October 2000 to bring their legislation into line with the conclusions of the panel and the
appelate body. If, at that date, the United States have not abolished the FSC status or amended it so as to
bring it into line with WTO regulations, the Community will be able to exercise its rights as laid down in
article 22 of the memorandum on dispute settlement, and either obtain compensation from the United
States, or suspend equivalent concessions, as the United States themselves have done in the cases of
hormone-treated beef and bananas.

(2000/C 330 E/251)

WRITTEN QUESTION P-0810/00

by Pasqualina Napoletano (PSE) to the Commission

(10 March 2000)

Subject: Situation of dentists in Italy

In 1985 Italy transposed the 1978 EU directive on dentistry by means of Law 409/85, which was to apply,
inter alia, to graduates in medicine who had registered at university prior to 28/1/1980. This gab between
1978 and 1985 meant that thousands of young people took up medical studies after 1980 with the
to do so by the 1985 law
intention of becoming dentists and were retroactively denied the right