In the trade dispute with the US over illegal EU subsidies to the aircraft manufacturer Airbus, the French government is preparing for retaliation. The response to US punitive tariffs must be voted on European level, said government spokeswoman Sibeth Ndiaye on Thursday the broadcasters BFMTV and RMC. Which US products could be affected, Ndiaye left open. Economics and Finance Minister Bruno Le Maire said US sanctions are "an economic mistake and a political mistake".
The US had previously announced that it would impose billions of dollars in punitive tariffs on imports from the EU. From 18 October on imports of aircraft an additional levy of ten percent is levied, it was said. For many other products, including cheese, wine, whiskey, butter, olive oil and coffee, there will be a fine of 25 percent, said a senior official of the US Trade Representative on Wednesday.
The tariffs mainly relate to products of the countries that were responsible for Airbus subsidies: Germany, France, Spain and the United Kingdom.
World Trade Organization (WTO) arbitrators had allowed Washington to impose punitive tariffs on $ 7.5 billion worth of goods in the Airbus aid dispute. This is the highest amount ever approved in the nearly 25-year history of the WTO. US President Donald Trump spoke after the decision of a "great victory for the United States".
Maximum penalty 100 percent duty charge
The basis for the retaliatory measures is a WTO ruling of May 2018, which ended the dispute over Airbus subsidies after nearly 15 years in favor of the US. The EU, for its part, has been granted similar subsidies for the US aviation group Boeing and threatens to impose punitive tariffs in the coming year as well.
The WTO Dispute Resolution Panel has yet to approve the new US tariff, but that is a matter of formality. The US government has asked for a meeting on October 14th. The duties may be imposed until the losing party - here the EU - has eliminated the alleged trade distortions. The EU says that has happened long ago. The WTO trade experts test since August 2018.
The US has now been allowed punitive tariffs of up to 100 percent. However, it deliberately did not resort to the theoretically allowed maximum rate because of a negotiated settlement with the EU, US Trade Representative Robert Lighthizer said: "We expect to enter into negotiations with the European Union to solve these problems in a way that will help American workers. "
At the same time, it was said that the US had the power to raise tariffs at any time or change the products concerned. The Trade Representative will continue to re-evaluate tariffs "based on our discussions with the EU."
France's government spokeswoman Ndiaye said on Thursday that "for several months now, the United States has been told that it is better to find negotiated solutions than to engage in trade disputes."
The industry demands a negotiated solution
Representatives of the German economy expressed their concerns about the announced US punitive tariffs on Thursday. "It is disappointing that the US is using the dispute over Boeing and Airbus to escalate trade policy rather than bargaining," said Joachim Lang, chief executive of the Federation of Industry (BDI).
In principle, US tariffs are legally legitimate on the basis of the WTO procedure, said Lang. "At the same time, they are extremely damaging to the economy and political relations." The industry representative therefore demanded that the US and the EU quickly find a negotiated solution to abolish tariffs. For this purpose, the US already had talks by the EU.
Meanwhile, the German Federal Ministry of Economics explained that it had taken note of the decision of the WTO and the subsequent announcement from the United States. "We will have a close exchange and vote with the European Commission," said Minister Peter Altmaier's home on Thursday. Everything else must be awaited.