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L ‘WTO gave the green light to the European Union in homework against the United States.
Brussels, therefore, has the right to attack American products as part of the complex and protracted controversy over illegal state aid to airlines (Airbus for Europe and Boeing for the USA).
What does this change mean for trade relations between Europe and the United States? the tariff war?
EU vs US: $ 4 Billion in Tariffs Ready?
The WTO decision has rekindled attention to EU-US relations. UU., In a worrying perspective tariff battle.
In fact, Europe has been granted the right to strike almost 4 billion dollars of US products with punitive tariffs in retaliation for illegal state aid to Boeing.
The World Trade Organization announced the decision on Tuesday, October 13. The EU will now have to decide when and whether to implement these measures.
Retaliation rights are worth $ 3.99 billion and are less than $ 7.5 billion granted to the US last year in a parallel case against Airbus, and even less than the 8.58 billion dollars requested by the EU.
Brussels has already identified a wide range of American products it could target, including planes, fitness machines and blueberries.
Valdis Dombrovskis, the European Commissioner for Trade, said the long-awaited decision should be the basis for the two sides to come together and agree on subsidy rules for the aviation sector.
This is his comment:
“Our strong preference is for a negotiated deal. Otherwise, we will be forced to defend our interests and respond in a proportionate way “
The United States also expressed its willingness to resume negotiations before any tariff escalation.
EU-US Rights: Aviation Industry Shakes
The controversy over aircraft subsidies is one of the longest in WTO history, reflecting the economic importance and competitive pressure felt by manufacturers on both sides of the Atlantic.
Now, the possibility that the EU impose fees even in airplanes it has shaken the sector, which is already at great risk.
Airbus and Boeing officials have raised the alarm in Financial times: Dispute resolution is critical at a time when aircraft manufacturers are grappling with the COVID crisis.
Not only that, the potential competitive threat from Chinese production is also concerning. For this, the company Boeing warned:
“Rather than compound the problem with threats to companies The US and its European customers, Airbus and the EU should focus their energies on genuine efforts to resolve this long-standing dispute. “
Attention in the United States is at the highest level and Europe is aware of the crucial game that is played in trade relations with the American partner.
