Sun. Apr 21st, 2019

The US threatens to impose additional tariffs on the EU for its aid to Airbus

The US threatens to impose additional tariffs on the EU for its aid to Airbus


The Government of the United States has raised the possibility of applying additional tariffs to a list of more than 300 products of the European Union in retaliation for the presumed public subsidies that the Twenty-eight lend to the European aeronautical constructor Airbus and that represent an annual negative impact of 11,000 million dollars (9.765 million euros), according to the estimates of the office of the US Trade Representative (USTR).

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"USTR estimates the damage to trade of EU subsidies at 11,000 million dollars per year," the Office said, noting that this figure, with respect to which the Community authorities disagree, is subject to arbitration by the World Trade Organization, whose opinion is expected for this summer.

The list includes 315 categories of products originating in the EU it will not be final until the WTO arbitrator presents its report on the value of the countermeasures, after which USTR will announce the final list of products affected by the tariff increase appropriate to the adverse effect that has been determined.

The preliminary list published by the US Administration includes a specific section for theElicópteros, transport aircraft and fuselage components for civil aviation manufactured by France, Germany, Spain or the United Kingdom, countries specially designated by the USA in their dispute over public subsidies to Airbus.

Among the other EU products that could be affected by the increase in tariffs are different varieties of cheese, such as Roquefort, Cheddar and Gruyere, as well as fruits such as tangerines and lemons, in addition to virgin olive oil and olives, as well as clothes or articles of ceramics or glass.

"This case has been in litigation for 14 years and the time has come to act, and the Administration is preparing to respond immediately as soon as the WTO determines the amount of US countermeasures," said Robert Lighthizer, head of USTR.

In this regard, Lighthizer expressed the will of the US to reach an agreement with the EU to end all public aid that does not meet the WTO requirements, stressing that "once the EU removes these harmful subsidies, the US will lift tariffs additional. "

"After many years trying unsuccessfully to convince the EU and four of its members (Spain, France, United Kingdom and Germany) to end the subsidies to Airbus, the US denounced this aid to the WTO in 2004," explained the USTR.

The WTO determined in 2011 that the EU had provided public aid amounting to 18,000 million dollars (15,970 million euros) between 1968 and 2006, after which the EU withdrew some "minor" subsidies, but kept most of it unchanged, after which in May 2018 a report determined that the EU aid to Airbus had caused a significant drop in sales to Boeing, as well as the loss of market share of the US in the EU, Australia, China, Cora del South, Singapore and United Arab Emirates.

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