On Aug. 30, a three-judge panel of the World Trade Organization issued its final ruling in a trade dispute that dates back to the Nixon Administration. The international court authorized the European Union to impose penalty tariffs on U.S. exports to Europe by as much as $4 billion a year, by far the largest penalty ever against any of the 144 nations in the Geneva-based trade organization. And the WTO decision represents a complete victory for the Europeans. At the heart of the dispute is a $4-billion-a-year tax break, called the Foreign Sales Corporation [FSC], for U.S. exporters. The panel...