EU to Lift U.S. Sanctions Jan. 1

[Khephra]

BRUSSELS (Reuters) - The European Commission is sticking with its plan to lift sanctions on $4 billion worth of U.S. goods on Jan. 1 following Washington's repeal of illegal export tax subsidies in October, a spokeswoman said on Thursday.

``There is not a new policy ... our goal is to lift the sanctions on January 1 in recognition of the fact that the United States has made a step forward by amending its legislation,'' Claude Veron-Reville said.

She was denying a report in the Financial Times that the 25-member European Union was set to delay its promised removal of punitive import tariffs. However, Veron-Reville said the EU could reimpose sanctions at a lower level in 2006 -- probably around 60 percent of the $4 billion -- if the World Trade Organization (WTO) finds in its favor on the U.S. law repealing Foreign Sales Corporation (FSC) subsidies.

http://www.nytimes.com/reuters/business/business-trade-eu-usa.html