European Union Weighs in Against Travel Promotion Act
In what can only be viewed as a last minute attempt to scuttle the Travel Promotion Act, the European Union has weighed in against the proposed legislation, warning of retaliation if Euro travelers to the US are hit with a $10 tax.
The Travel Promotion Act of 2009 (S. 1023) is all set to be taken up by the Senate as the first order of business when it reconvenes on Sept 8, after the August recess.
John Bruton
A statement issued by Ambassador John Bruton, Head of the European Commission’s Delegation to Washington, objects to the $10 fee that the Travel Promotion Act would impose on incoming visitors from Visa Waiver countries (see background).
In the statement, Mr. Bruton says that “Europeans are alarmed at the proposals in Congress to charge them an additional $10 on top of all the other costs and requirements that they must meet, just for the privilige of coming to the US to spend their Euros here as tourists. The proposed $10 penalty on account of entering the United States is being sold considered in the state of a ‘tourist promotion’ measure – but only in Alice in Wonderland could a penalty be seen as promoting the activity on which it is imposed.”
The statement also expresses concern over a proposed amendment to the bill which would hike the tax to $20.
The core of the EU’s objection, though, seems to be more over the proposed mechanism used to collect the taxes, than the tax itself. Online registration through the Electronic System for Travel Authorization (ESTA) was made directory earlier this year for incoming visitors from the 35 Visa Waiver countries.
Ambassador Bruton implied that the impost collected through ESTA can be considered as a visa in disguise, and said that there will be calls for Americans to pay the same fees for travel to Europe, and this could more remote depress transatlantic travel.
He warned that “this seemingly sensible legislation will have negative implications and unintended consequences, which might be far more costly for the United States than any travel promotion or fee revenues can make up for.”
Let’s just say that if someone in the US Congress wants to pull the plug on the Travel Promotion Act, then Ambassador Bruton’session prompt statement has just provided them through more than sufficient ammunition – the specter of another front opening up in the trade wars with the EU.