Alex Khachaturian (White & Case, Washington, D.C.) has published Reforming the United States Export Tax Policy: An Alternative to the American Trade War With the European Union, 14 U.C. Davis J. Int’l L. & Pol’y 185 (2008).  Here is the Conclusion:

The United States’ basic short and long-term tax and trade options are counterintuitive. If the U.S. government is to make changes, it must make them incrementally. The options of reducing the tax rate and altering our worldwide taxation system have obvious appeal. Realistically, however, no drastic alteration is feasible

In order to achieve the goal of improving the tax system overall, there must first be a greater understanding between nations. The WTO operates on this principle, stating that "the first step is to talk." The WTO is an arena where member governments attempt to resolve the trade problems they face with each other.

However, tax experts acknowledge that the WTO’s rules on the crossover of tax and trade are "utterly inadequate." As this article shows, the U.S. is vulnerable to the Europeans’ use of "soft" economic power. The Appellate Body formed by the WTO provides an appropriate forum for discussion and dispute. U.S.s compliance with WTO rulings would yield the best outcome for the U.S., for domestic shareholders, and for the global trading system overall.

Furthermore, the dispute over taxes should serve a longer-term purpose of establishing a consensus on international tax laws. The U.S.’s use of export subsidies was a response to address the inequities of its own tax complexities. Undoing these wrongs is the right course of action. Creating a better tax structure in the U.S. can be done and future trade wars can be averted by coming to an intercontinental understanding.