News

October 2003

Corporate Tax Reform Consultation Launched

London

UK Paymaster General, Rt Hon Dawn Primarolo, MP, has invited businesses to comment on the Government’s on-going corporate tax reform project begun in 1997 and given focus in its August 2002 Consultation Document, Reform of Corporation Tax. This latest consultation, Reform of Corporation Tax, launched in August 2003, is an attempt to continue reform with a view towards making the UK’s tax system more competitive in light of changing EU and international tax standards.

Amongst the Treasury’s aims is to align the corporate tax system with economic concepts of income and profit – as opposed to simply taxing each company by the same standard – thus encouraging investment in the most productive business assets. This, it is hoped, will stimulate productivity and growth.

Those wishing to contribute comments to the paper should respond by November 3. 

BritishAmerican Business Action

BritishAmerican Business Contributes to EC’s Chemicals Consultation

In July, BritishAmerican Business’s EU Trade and Investment Forum submitted its contribution to the on-line REACH Chemicals contribution. As detailed in the March 2003 Issue Insight, the proposed EC chemicals legislation would legislate the re-testing and registration of tens of thousands of chemicals used in common manufacturing, saddling the chemicals industry in Europe with most of the associated costs. In its submission, the Forum argued that such legislation, if unchanged, would have negative impacts on innovation, European economic competitiveness and transatlantic trade, as it is estimated that US exporters could expect to pay US$400 million in costs under the current version of the legislation.

Steel Tariffs Debate Returns

Washington

A report completed on September 21 by the US International Trade Commission has concluded that the US steel industry may have been modestly helped by the strong tariffs imposed by President Bush in March 2001. However, outweighing this, the report, Steel: Monitoring Developments in the Domestic Industry, reveals the detrimental effect the tariffs have had on steel consuming industries such as tool companies and automakers. 

Steel consuming industries have reported a decline in earnings of US$601 million in the 18 months since the tariffs were implemented and job losses of about 20,000. In August, the United Steel Workers of America gave their support to Democratic Presidential candidate, Richard Gephardt.

Commission Seeks Views on E-Commerce

Brussels

In an effort to reinforce its Lisbon Strategy to become the world’s most competitive economy, the European Commission, Directorate General Enterprise is seeking accounts from European business people conducting e-commerce in the EU. The objective of the consultation is to collect feedback and practical experiences from the market, as well as to identify existing practical barriers or new legal problems encountered while conducting business electronically.

The European Initiative in Electronic Commerce, implemented in 2000 focussed on ensuring the best commercial and regulatory environment for all business in the EU. Three years on, e-commerce has become more ubiquitous and a vital part of many companies’ operations. However, regulatory and legal barriers still exist and the Commission is keen to address these in an effort to make business-to-business and business-to-consumer e-commerce more free flowing. The Consultation on Legal Problems in E-Business ends on November 7.

Upcoming BritishAmerican Business Policy Events

 October 14, breakfast with Harold McGraw III, CEO of McGraw Hill.

  October 28, conference, “The US and Europe: Partners and Competitors – New Paths for the Future”, in association with the German British Forum.

  December 3, Annual BritishAmerican Business-RUSI Conference, “Strategic Impact of the Trans-Atlantic Science and Technology Gap".

Please contact: ukevents@BritishAmerican Businessnc.org