Untitled Document

News Stories - EU to impose sanctions on US

The trade dispute between America and Europe has been a war of words so far with tariffs threatened but not imposed. That will now change. The World Trade Organisation which polices world trade has ruled that a tax break given to American exporters, like Boeing and Microsoft gives them an illegal unfair advantage.

The EU's trade commissioner, Pascale Lamy, has now told American legislators on a visit to Washington that the tariffs will be imposed on Monday. An extra five percent tax will be put on some American exports with the rate rising the longer Congress and the Senate refuse to change the law. The EU decision gives American lawmakers a dilemma. With jobs an issue there will be grassroots political pressure not to back down to an international body like the WTO or to what they will see as European politicians.

- vocabulary:

trade dispute: a disagreement about buying and selling goods
tariffs: tax on goods coming into a country
threatened: if you threaten someone, you warn that you will make problems for them
imposed: if you impose something, you force someone to accept it
polices: if an organisation polices something, it makes sure that no rules are broken
tax break: permission to pay less tax

legislators: people who make the laws

dilemma: difficult situation in which you have to choose between two or more alternatives
grassroots: the ordinary people in an organisation rather than its leaders
back down: if you back down, you decide not to do something you had threatened to do