15 October 2019

EurActiv: WTO clears US to target $7.5 billion of EU exports with tariffs

The World Trade Organisation formally authorised the US to impose tariffs on up to $7.5 billion worth of EU exports after an arbitrator’s decision over subsidies to planemaker Airbus.

The WTO’s dispute settlement body, made up of representatives from its 164 members, cleared Washington to take countermeasures against the EU and Airbus-producing countries Britain, France, Germany and Spain.

The tariffs are expected to enter into force on Friday (18 October).

Washington said it will impose 10% tariffs on Airbus planes and 25% duties on a range of products, including French wine, Scottish whiskeys and cheese from across the continent.

The authorisation was a formality after a WTO arbitrator awarded a record right to retaliate over illegal subsidies this month. It would only have been denied if all WTO members present voted against. The meeting lasted less than 20 minutes.

U.S. trade ambassador Dennis Shea told the meeting that Washington still preferred a negotiated solution.

“But that can only happen if the EU genuinely terminates the benefits to Airbus from current subsidies and ensures that subsidies to Airbus cannot be revived under another name or another mechanism,” he told the meeting.

The EU delegation told the meeting that it had “serious concerns” and that US tariff measures were short-sighted. [...]

Full article on EurActiv

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