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Tuesday 20th March 2018

US Threatens New Tariff on EU Products Over Airbus Subsidies

Business

7Dnews London

Tue, 09 Apr 2019 13:02 GMT

The United States on Monday April 8th threatened to impose tariff countermeasures of up to $11.2 billion on a range of European products in response to financial support received by Airbus.

In a statement issued on Monday and reported by AFP, the US Trade Representative (USTR) said that the World Trade Organization (WTO) found that European Airbus subsidies had a negative impact on the United States. 

"Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted," the statement said. 

According to statement, the amount it would seek was subject to WTO arbitration. 

The USTR issued a document with a preliminary list of products being considered for additional tariffs, including helicopters, civil aircraft, and aircraft spare parts, as well as food products such as swordfish, salmon, cheese, fruit, olive oil, and wine. 

The US-EU dispute over Boeing and Airbus began 14 years ago, but the two sides agreed to start a limited trade deal as part of a truce agreed in July. 

The USTR statement comes at a time when Boeing is facing a crisis over two fatal accidents involving its 737 MAX aircraft. 


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