Euro Clash

Removing tariffs is easy. Breaking down social barriers to trade is hard.

Skirmish Lines

October 1998: European Union imposes moratorium on genetically modified organisms (GMOs).

March 2000: World Trade Organization declares U.S. Foreign Sales Corporation (FSC) export tax benefit an illegal subsidy.

September 2000: WTO declares U.S. 1916 Act illegal.

October 2000: U.S. Continued Dumping and Subsidy Offset Act (Byrd Amendment) passes.

November 2000: Congress replaces FSC with Extraterritorial Income Exclusion Act (ETI Act).

November 2000: EU says ETI Act does not address FSC problems, requests authority to levy $4 billion in trade sanctions.

December 2000: WTO rules EU banana restrictions illegal.

January 2001: U.S. and EU agree to reduce barriers on telecommunications and electronic products.

April 2001: U.S. and EU resolve longstanding dispute over banana trade.

November 2001: Doha round of global trade talks begins in Doha, Qatar.

January 2002: EU requests WTO permission to retaliate over 1916 Act.

January 2002: WTO rules ETI Act illegal.

March 2002: U.S. imposes tariffs on steel imports.

April 2002: EU threatens retaliation against U.S. steel tariffs.

June 2002: EU says it may restrict U.S. access to its grain and rice markets.

August 2002: WTO rules EU may impose $4 billion in sanctions over ETI Act.

January 2003: WTO declares Byrd Amendment illegal.

March 2003: U.S. invades Iraq.

May 2003: U.S. files case against EU moratorium on GMOs.

September 2003: Doha round breaks down in Cancun, Mexico.

November 2003: WTO declares U.S. steel tariffs illegal.

February 2004: British Trade Secretary Patricia Hewitt criticizes U.S. for protectionist stance.

February 2004: WTO rules EU may retaliate against U.S. for 1916 Act.

March 2004: EU institutes retaliatory tariffs for Byrd Amendment.

March 2004: EU begins instituting retaliatory tariffs for FSC and ETI Act.

Sources: U.S. Trade Representative, EU Trade Commissioner, WTO


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