Press Release: EU and US reach agreement on procedures for handling Foreign Sales Corporations (FSC) dispute

Following meetings in late September 2000 in Brussels, the EU and US have agreed on procedures for handling the Foreign Sales Corporation (FSC) dispute. Pascal Lamy, European Trade Commissioner, welcomed the agreement. He said: 'The agreement reached today reflects our common desire to handle trade disputes in a pragmatic and non-confrontational manner. Our priority is to resolve disputes, not exacerbate them. We disagree on the replacement FSC system which, in our view, remains incompatible with the WTO findings. We have agreed on how to handle this - but in doing so, fully protecting the EU's rights and interests in the WTO'.