Wed. Oct 23rd, 2019

Brussels rejects a war of tariffs for aid to Airbus and Boeing


Brussels refuses to engage in a tariff war with U.S for the dispute in aid to Airbus Y Boeing. After giving the WTO green light on the imposition of 6,800 million euros in tariffs for European subsidies to Airbus, and already with the Trump Administration moving to apply them, the European authorities urge dialogue and an agreement.

"I deeply regret" that the United States has proposed to impose tariffs on the European Union, says Cecilia Malmström, European Commissioner for Commerce, in a letter that she has sent to Robert Lightizer, her American counterpart, to which she has had access The vanguard. "This will make negotiating an agreement more difficult, and will push the EU to impose countermeasures when the time comes," he says in reference to the WTO study of US aid to Boeing following a European complaint. Thus, it recognizes that, in any case, Europe is ready to answer.






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"It's not the solution," says Malmström

“I strongly believe that imposing additional tariffs on both companies is not the solution. It will only inflict damage on companies and put at risk jobs on both sides of the Atlantic, it will damage global trade and the aviation industry in sensitive times, ”insists the current commissioner, who will be replaced by Phil Hogan in the next Commission. Therefore, Malmström urges to negotiate citing the "common interest" and find a "fair" agreement for both cases "as soon as possible".

The European Commissioner for Commerce, Cecilia Malmström

The European Commissioner for Commerce, Cecilia Malmström
(Virginia May / AP)




In its letter, the Swedish commissioner refers to a first round of contacts in July in which European representatives proposed concrete measures to their American counterpart to reform the subsidy regime for the air sector and respect for the regulations, which until now have not They have received an answer. Brussels raises this route again and again. "Our availability to reach a fair agreement is maintained," says the letter. The ultimate goal is to "leave these cases behind," he continues.


Subsidies

Reform the system before the appearance of new actors

Likewise, Malmström calls for negotiations at a higher level, to deal with the aid system of the entire aeronautical industry as a whole, especially in a market entry framework of “new heavily subsidized competitors”.







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