Europe Demands U.S. Drop Tariffs After Member States Comply With Airbus Ruling

The European Commission wants the United States to scrap tariffs on a range of manufactured and agricultural goods now that E.U. states found to be providing illegal subsidies to Airbus have complied with WTO demands.
Aug. 4, 2020
Costas Vasilopoulos

Recent News

The European Commission has called on the United States to lift the tar­iffs it imposed on a range of European imports last year.

The Commission said that the gov­ern­ments of Germany, France and Spain have fully com­plied with the require­ments of the World Trade Organization, after the inter­na­tional trade body ruled that the three had pro­vided ille­gal sub­si­dies to the air­craft man­u­fac­turer, Airbus.

See Also: Trade News

Tariffs worth $7.5 bil­lion were intro­duced last October by the U.S. Trade Representative, affect­ing a wide range of European agri­cul­tural and man­u­fac­tur­ing goods, includ­ing pack­aged olive oils from Spain and some table olives from France and Spain.

The three mem­ber states agreed to make mod­i­fi­ca­tions to the ini­tial terms of financ­ing the aero­nau­tics com­pany, accord­ing to the WTO rec­om­men­da­tions, and end a 16-year-long dis­pute with the orga­ni­za­tion. As a result of the set­tle­ment, the Commission asserted that the U.S. tar­iffs are ground­less and requested that they be dis­missed.

Unjustified tar­iffs on European prod­ucts are not accept­able and, aris­ing from the com­pli­ance in the Airbus case, we insist that the United States lifts these unjus­ti­fied tar­iffs imme­di­ately,” Phil Hogan, the E.U. Commissioner for Trade, said.

The E.U. has made spe­cific pro­pos­als to reach a nego­ti­ated out­come to the long run­ning transat­lantic civil air­craft dis­putes and remains open to work with the U.S. to agree a fair and bal­anced out­come, as well as on future dis­ci­plines for sub­si­dies in the air­craft sec­tor,” he added.

Hogan also threat­ened retal­ia­tory mea­sures in case the duties are not lifted by the U.S., pend­ing the deci­sion of the WTO on a sim­i­lar case regard­ing the United States pro­vid­ing ille­gal sub­si­dies to American air­craft man­u­fac­turer, Boeing.

In the absence of a set­tle­ment, the E.U. will be ready to fully avail itself of its own sanc­tion rights,” Hogan said. The WTO will soon issue its arbi­tra­tion deci­sion in the par­al­lel case of the E.U. against the United States on cer­tain unlaw­ful sub­si­dies to Boeing, where the appel­late body had found the U.S. to be in breach of its WTO oblig­a­tions.”


Related News

Feedback / Suggestions