Chamber Urges Swift, Final Congressional Action on FSC/ETI

WASHINGTON, D.C. – As the House begins deliberation on the foreign sales corporation/extraterritorial income bill, the United States Chamber of Commerce today reminded lawmakers that the costs of not moving swiftly to final congressional action are adding up by the day.

"The length of this debate truly can be measured in dollars and cents," said Bruce Josten, Chamber executive vice president. "The retaliatory tariff is now eight percent and will climb one percent a month to 17 percent unless Congress takes action. These tariffs will hurt American businesses and workers until Congress gets a bill on the president's desk that will lead to their end."

After the World Trade Organization ruled the United States out of compliance with its international trade agreement obligations, the European Union imposed tariffs on certain U.S. imports beginning March 1, 2004. Among the hardest hit by these tariffs have been American exporters in the manufacturing, timber and paper industries.

The Chamber applauded the House taking up H.R. 4520, the American Jobs Creation Act of 2004, which would bring the United States into WTO compliance and lead to the elimination of the EU retaliatory tariffs on certain American goods. The bill, which is being spearheaded by Ways and Means Chairman Bill Thomas (R-Calif.), contains provisions that also would bring much needed tax relief and reform to enhance the competitiveness of American businesses, according to the Chamber.

"This bill bolsters our growing economy by making it easier and more affordable for American businesses to reinvest and create jobs here," Josten said. "Keeping our businesses competitive on a global level is critical and the House must approve this bill and move it to a conference with the Senate."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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