EU tariffs on US exports, including some timber products, may soon be lifted after the Senate passed a bill designed to crack down on American tax incentives for companies promoting sales abroad.
The EU imposed the US$4bn-a-year duties on March 1 after the US failed to bring its tax laws into harmony with World Trade Organisation rules. About one-third of US softwood products shipped to the EU are covered by the tariffs, including veneer, finger-jointed mouldings, OSB and non-structural panels.
An EU statement said the Senate had taken a very important step and promised to drop the duties the moment the US bill becomes law.
However, the bill, which now has to go through the House of Representatives, offers new tax breaks for companies.
