Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-03-14-Speech-2-144"

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"en.20060314.21.2-144"2
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". Creating a single market between 25 States with very different labour, social and fiscal costs was bound to lead to the relocation of businesses to the countries with lower production costs, and that is indeed what has happened. The ten new Member States are attracting businesses from 'old Europe' and even US businesses based in Mexico. It is particularly shocking that these countries are providing an attractive tax climate, and then getting their sanitary, social, road network and other improvements paid for by the western countries, which, by increasing their taxes to pay for the ten new countries, are worsening their own production problems. For relocations outside the EU, there is a basic solution. We need to invent customs duties using new technologies with three characteristics. They must be variable according to the difference in costs between the two countries in question. They must be reimbursable, with the customs duty paid by the exporter becoming a 'tax credit' deductible from purchases from the importer's economy. In other words, the customs duty would give the exporter a drawing right on the importer's economy, which is a win-win situation for international trade. Finally, they must be redeemable when the importer wants to grant a benefit to the exporter. The customs credit would thus become a matching credit of the kind already in existence in international tax law."@en1

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