4 billion dollar fine on the US,how do ya'll like them apples?

[Matthew X]

The World Trade Organization ruled Friday that the European Union may 
impose record sanctions of some $4 billion on U.S exports, creating a major 
incentive for Washington to abandon special tax breaks for U.S. companies.
Read the full text of the World Trade Organization ruling .
The $4 billion sanction threat -- 20 times the amount imposed in any 
previous WTO disputes -- is a major victory for the EU over what it calls 
the "huge illegal export subsidy" provided to U.S. exporters. But EU 
officials have indicated that they will hold off on imposing the sanctions 
if the U.S. changes its tax policies and comes into compliance with WTO rules.
"We are satisfied by today's decision that makes the cost of non-compliance 
with the WTO crystal clear," Trade Commissioner Pascal Lamay said in a 
statement issued by the European Commission.
The U.S. tax break program, known as "Foreign Sales Corporations," allows 
U.S. companies with foreign interests to exempt between 15 and 30 percent 
of their export income from U.S. taxes. Approved by Congress in 2000, the 
provision allows major U.S. exporters such as Boeing, Microsoft and Disney 
to pay less tax, making their products cheaper and giving them an advantage 
over foreign competitors.
The EU asked the WTO for the right to retaliate on $4.043 billion worth of 
goods, based on the amount of damage done to EU companies struggling to 
compete with U.S. corporations taking advantage of the tax breaks. A 
special panel of trade arbitrators decided on the sanctions figure after a 
series of starts and stops on the case since January.
http://www.pbs.org/newshour/updates/wto_08-30-02.html