The European Union will impose duties on U.S. goods

The EU has received permission from the World Trade Organization to impose fines of €3.4 billion per year on U.S. imports.

The World Trade Organization (WTO) has allowed the EU to impose fines on goods imported from the U.S. in the amount of 4 billion dollars (3.4 billion euros) per year. As it is stated in the statement of WTO on Tuesday, October 13, this measure is adequate to “unfavorable effects” caused by the illegal subsidization of American air concern Boeing by the US authorities.

The dispute about the state aid of Boeing Corporation and its European competitor — Airbus concern — lasts more than 16 years. As a result, the WTO recognized some subsidies are unacceptable for both aircraft manufacturers. In 2019, the organization allowed the U.S. to collect duties for European goods and services worth about 7.5 billion euros. The Airbus aircraft were affected, as well as wine, cheese, and olive oil.

Boeing criticizes the WTO decision

American aircraft builders criticized the WTO decision. As stated in a statement by Boeing, “there is no strong reason for the EU to take action in response to any American goods. The decision of Airbus and the EU to introduce penalties for U.S. manufacturers and their employees is disappointing, the concern noted.

Airbus supported the WTO

In turn, Airbus said it welcomed the imposition of penalties on goods from the U.S. and hoped to resolve the long-term dispute over illegal subsidies. As stated in the statement of the concern, Airbus unconditionally supports the European Commission in implementing the measures necessary to create a balanced competitive environment.

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