WORLD TRADE WT/DS108/1/Add.1
G/SCM/D18/1/Add.1
ORGANIZATION G/L/212/Add.1
G/AG/GEN/19
12March 1998
(98-0995)
Original: English
UNITED STATES -TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Request forConsultations bytheEuropean Communities
Addendum
Thefollowing communication, dated 4March 1998, from thePermanent Delegation ofthe
European Commission tothePermanent Mission oftheUnited States andtotheDispute Settlement
Body, iscirculated attherequest oftheEuropean Communities.
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Inmyletter of18November 1997, theEuropean Communities requested consultations under
Article 4ofthe"Understanding onRules andProcedures Governing theSettlement ofDisputes",
Article XXIII:1 GATT 1994, andArticle 4oftheAgreement onSubsidies andCountervailing Measures
(ASCM)withrespecttoSections921-927oftheInternalRevenueCodeandrelatedmeasuresestablishing
special taxtreatment for"Foreign Sales Corporations" (FSC).
TheEuropean Communities hereby request theconsultations tobeextended alsotoinclude
consultations under Article 19oftheAgreement onAgriculture.
TheEuropean Communities wishtoexpress theirconcern withthelackofconformity ofthe
FSCsystem withtheobligations oftheUnited States ofAmerica inparticular under Articles 8,9and
10oftheAgreement onAgriculture, taking intoaccount theDefinition ofTerms listed inArticle 1
oftheAgreement onAgriculture.
Acopyofthisrequest isbeing senttotheChairman oftheDispute Settlement Body andto
theDirectoroftheLegalDepartmentoftheWorldTradeOrganisationSecretariatforonwarddistribution
totheChairman oftheCouncil forTrade inGoods, totheChairman oftheCommittee onSubsidies
andCountervailing Measures andtotheChairman oftheCommittee onAgriculture.
Ilookforward tohearing fromyouthatyouaccept thisrequest forconsultations andtoagreeing
amutually convenient dateforthem tobeheld.
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