BRUSSELS, BELGIUM, Oct. 25, 2004 - The European Union moved Monday to lift millions of dollars in punitive tariffs on U.S. goods following the repeal in Washington of corporate tax breaks that were ruled illegal by the World Trade Organization.

Prolonging the two-decade fight are EU concerns that the new law could allow big exporters like Boeing Co. - already a sore point in trans-Atlantic relations because of a new dispute over alleged unfair subsidies to it and rival Airbus SAS - to benefit from the breaks beyond the two-year transition period.

The EU sanctions could potentially return if the U.S. law is judged to be not in compliance with the WTO ruling, as happened to the first reform passed by the U.S. Congress in 2000.