The Strategist

United States imposes 10% duties on aircraft from the EU, 25% on other goods


10/03/2019 - 05:49



The World Trade Organization (WTO) recently confirmed the US possibility to impose duties on European goods. Accordingly, the country will introduce a number of similar measures on October 18, Bloomberg reports citing unnamed representatives of the US Department of Commerce.



Kitt Amaritnant
Kitt Amaritnant
The United States will introduce duties of 10% on aircraft from the EU, but not on aircraft parts. In addition, 25% duties will apply to some other EU products, including industrial and agricultural products.

An official at the US Department of Commerce explained to the newspaper that the WTO ruling gives Washington the right to introduce a 100% duty. However, according to the official, the United States refrained from such tough measures, because the country wants to resolve disagreements with the EU over the aviation industries of both sides.

It is expected that the United States will publish a list of products subject to new duties later on Wednesday or Thursday.

On Wednesday, the WTO allowed the United States to levy duties on European exports of $ 7.5 billion in total in response to unlawful subsidies by the European Union to the aircraft company Airbus SE.

The WTO's final decision, released on Wednesday, opens a new front in the trade war for the administration of US President Donald Trump, Dow Jones notes.

The EU, in turn, accuses Washington of subsidizing Boeing, and this dispute has been going on in the WTO for 15 years. Earlier, the WTO declared the US subsidies for Boeing illegal. In the first half of next year, it should decide on the volume of US exports, for which the EU will be able to introduce new duties.

Following the WTO decision on Wednesday, Cecilia Malmström, spokeswoman for the European Commission on Trade, said that if the United States introduced trade measures for the European Union as part of the Airbus case, the EU would be ready for retaliatory action.

source: bloomberg.com, dowjones.com




More
< >

Tuesday, February 18th 2020 - 10:03 IMF refuses to write off Argentina's debt

Tuesday, February 18th 2020 - 09:44 Jeff Bezos to create Bezos Earth Fund