USTR reported that A World Trade Organization (WTO) compliance panel today rejected the European Union’s (EU) latest claims that it complied with WTO rules by making minor changes to its massive launch aid subsidies to Airbus. The WTO recently valued the harm caused by these subsidies at $7.5 billion.
As a result of the EU’s failure to address these subsidies, on October 18, the United States imposed tariffs of 10 percent on large civil aircraft and 25 percent on agricultural and other products, with the bulk of these tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies. In light of today’s report and the lack of progress in efforts to resolve this dispute, the United States is initiating a process to assess increasing the tariff rates and subjecting additional EU products to the tariffs. USTR will publish a Federal Register Notice regarding that process later this week.
- Posted by Joe DeSilvetri
- On December 6, 2019
- 0 Comments