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Texas Agriculture Archive

May 21, 2004

Senate passes FSC/ETI
repeal legislation

The Senate has passed legislation that repeals the foreign sales corporation/extraterritorial income act.

The FSC/ETI tax break has been ruled illegal by the World Trade Organization, and is the reason the European Union began imposing sanctions, climbing 1 percent per month, on U.S. products.

Next, the House must take action, which will then go to both chambers to be ironed out. The final bill will go to President Bush for his signature.

"Passage of the FSC/ETI repeal would end tariffs that keep our products out of Europe," said Pat Wolff, senior director of congressional relations for the American Farm Bureau Federation. "It would also provide tax incentives to boost production of homegrown fuels like ethanol and biodiesel."