Article: IN BRIEF (Page: 1, Date: 11/06/2003)

BRUSSELS

EU approves 'soft' sanctions against US

The European Commission yesterday armed itself with sanctions in a long-running trade dispute with the United States, but backed a softly-softly approach to imposing penalties on up to US$4 billion worth of goods.

A spokeswoman said the EU executive approved a proposal to launch sanctions gradually from March 2004, with an introductory tariff of 5 per cent. This is to increase by 1 per cent a month for a year, by which time the EU hopes Washington will have repealed the tax laws which sparked the sanctions.

The commission is gearing up to slap sanctions on another US$2.2 billion worth of US goods as early as December, in a separate dispute ...

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