Europe will cancel plans for punitive tariffs on U.S. imports, if Congress repeals legislation that grants tax breaks to U.S. companies such as Boeing Co.
The European Union’s decision could end one of the most contentious and costly trans-Atlantic trade disputes. It also could warm relations strained by stalled global trade talks.
If signed into law, the measure would end a U.S. tax break that the World Trade Organization ruled illegal despite numerous revisions. It also would cut short a lengthy phase-out plan that the WTO also ruled illegal. Sometimes called the foreign sales corporation export subsidy, the rule has been in dispute for decades in various guises.