The European Union imposes duties on the U.S. as of Tuesday but is ready to cancel them if the U.S. cancels its duties on the Airbus case.
The European Union has decided to impose import duties on the USA in the case of Boeing. This was announced on Monday, November 9, by the First Deputy Head of the European Commission Valdis Dombrovskis after the meeting of the EU Council on Trade.
Dombrovskis did not name the possible volume of U.S. exports, which can be taxed, but the WTO in its decision on the Boeing case allowed the EU to introduce duties against the U.S. for $4 billion.
“Our strategic goal is to develop a positive joint trade agenda with the United States. Unfortunately, due to the lack of positive signals from the EU, later today we are exercising our right confirmed by the WTO in the Boeing case. We will introduce trade measures against the U.S., we intend to publish them in the Official Journal today,” he said, adding that they will enter into force from November 10.
“We continue to urge the U.S. to lift the U.S. Airbus case fees, which have been in effect for a year. In this case, we will cancel the decision on our tariffs,” Dombrovskis stressed.
He refused to comment in detail on the structure of the new trade tariffs, stressing that they would be a mirror response to the U.S. duties in the Airbus case and would be aimed “not only at products of the U.S. aviation industry but also at certain types of agricultural and manufacturing goods”.
Dombrovskis also stressed that the EU does not want to escalate the trade war with the U.S. “and only enjoys its right obtained in the WTO proceedings.
The trade conflict between Washington and Brussels over Boeing and Airbus has continued since 2004. Both parties accuse each other of violating WTO norms and granting their aircraft manufacturers unauthorized state subsidies.
In 2019, the WTO dispute settlement body decided that there were violations of the rules of the organization in the case of Airbus, which gave the legal right to introduce compensatory duties on the part of the United States. However, in 2020, a similar decision was taken in favor of the EU in the case of Boeing. The administration of U.S. President Donald Trump in 2019 introduced customs tariffs against the EU in the case of Airbus for a total of approximately $7.5 billion.
Recall that in October the EU received permission from the WTO to impose penalties on goods imported from the U.S. in the amount of 3.4 billion euros per year.
The U.S. estimated the damage from EU subsidies to Airbus in the amount of $11 billion annually.