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WTO arbitrators approve EU tariffs billions on US imports - significantly less than desired

2020-10-14T03:13:04.515Z


After the USA imposed punitive tariffs on EU imports due to Airbus subsidies, the EU is also allowed to impose punitive tariffs against the USA, which illegally promoted Boeing. 


After the USA imposed punitive tariffs on EU imports due to Airbus subsidies, the EU is also allowed to impose punitive tariffs against the USA, which illegally promoted Boeing. 


Geneva - Due to several years of unauthorized

subsidies

for the

US aircraft manufacturer Boeing

, the

European Union can

now

impose

punitive tariffs

on US imports amounting to almost four

billion

dollars (3.4 billion euros) per year.

Independent

arbitrators

have now determined this, as the

World Trade Organization (WTO)

announced in

Geneva

on Tuesday

.

The arbitrators remained with the amount far below the demands of the

EU

.

She had

claimed

twelve

billion

dollars in damage, and in conversation with the

arbitrators,

then 8.6 billion, because

Airbus

had been disadvantaged for years

by government aid for competitor

Boeing

.

In a similar case, the

US

arbitrators

had already

approved

punitive tariffs on products from the

EU

amounting to 7.5 billion dollars

due to illegal subsidies for Airbus

.

Punitive tariffs on imports: USA did not stop subsidies

The verdict was the preliminary line under the two disputes between the

trading giants USA and EU

, which have lasted for more than 15 years.

An appeal is excluded.

The

EU

has already

threatened

taxes

on ketchup, game consoles and other products.

The

WTO mediators

had already concluded in March 2019 that the

USA

had

not stopped

government aid to

Boeing

that

had been criticized for years before

.

Since then, arbitrators have been busy

determining

the amount of

punitive tariffs

allowed

.

The

subsidies

included research grants from the NASA space agency and tax breaks.

The former bestseller of the Americans, the long-haul

aircraft Boeing 787

, called the Dreamliner,

was also subsidized by the state

.

. @ WTO to authorize tariffs on $ 4 billion of US exports to the European Union in the Boeing Subsidies Case https://t.co/xf9HgnuEZ8

- Airbus PRESS (@AirbusPRESS) October 13, 2020

A

good 15 years ago, the

EU

and the

USA

sued

each other

at the

WTO

for aid to

Airbus

and

Boeing

.

The

US

lawsuit

against

Airbus

was closed a little faster.

As early as May 2018, arbitrators discovered in the

Airbus case

that Brussels had not stopped the subsidies complained of.

They approved the

United States

in October 2019 so

punitive tariffs *

on goods worth $ 7.5 billion a year.

That was the highest amount

approved

since the

WTO was founded in

1995.

The

USA

implemented the judgment immediately: They made the import of cheese, butter and wine and many other products from Europe more expensive, as well as components for the aviation industry.

The

punitive tariffs

are between 15 and 25 percent.

They primarily punished the countries that

paid

Airbus subsidies

: Germany, France, Spain and the UK.

Punitive tariffs remain allowed until the subsidies have ended

The winning party in a

trade

dispute

may

levy

punitive tariffs

until the losing party

has eliminated the

subsidies in question

.

The

EU has been

asserting for months that all

Airbus aid has

been suspended and that the

punitive tariffs

must be stopped.

She has called for a new assessment by the

arbitrators

, but her motion is

not

making

any progress

in the crisis-ridden

WTO

.

The

USA also

say that the

Boeing aid

complained

about

no longer exists.

The

EU

last offered

the

US

in July to negotiate a settlement of the disputes and an end to all punitive tariffs.

Washington initially did not respond.

* Merkur.de is part of the nationwide Ippen-Digital editors network.

List of rubric lists: © Ted S. Warren / AP / dpa-Bildfunk

Source: merkur

All news articles on 2020-10-14

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