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Monday, November 9, 2020
For years, the United States and the European Union have been arguing over illegal subsidies for aircraft manufacturers Airbus and Boeing. Now the EU announces fines on imports from the US However, one is still open to talks, it is said from Brussels.
The EU will impose punitive tariffs on US imports due to illegal subsidies for aircraft maker Boeing. This was announced by the Vice President of the EU, Valdis Dombrovskis, in a videoconference of EU trade ministers. Therefore, the EU will not wait to see if the future president of the United States, Joe Biden, initiates a change of course in American trade policy.
The World Trade Organization (WTO) now has a decision allowing the EU to impose punitive tariffs, Dombrovskis said. That’s what you do now. At the same time, Dombrovskis stressed that the EU is still ready for negotiations. If the US withdraws or suspends its tariffs due to subsidies for European aircraft manufacturer Airbus, the EU will follow suit.
Independent mediators recently decided that the EU could impose punitive tariffs on US imports amounting to nearly $ 4 billion, about € 3.4 billion, per year due to illegal subsidies to US aircraft maker Boeing. In a similar case, US arbitrators had already approved punitive tariffs on EU products worth $ 7.5 billion due to illegal subsidies to Airbus. As a result, the United States immediately released tariffs on cheese, butter, wine, components for the aviation industry and other products from Europe of up to 25 percent, which are still valid today.
In the immediate aftermath of the WTO decision in mid-October, the EU announced that it initially wanted to explore the possibilities of a negotiated solution with the administration of US President Donald Trump. However, this was obviously not successful. More than 15 years ago, the EU and the US sued each other in the WTO over illegal subsidies for Airbus and Boeing.
