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The EC Requires The US To Cancel Duties On Exports From The EU After Airbus Meets The Requirements Of The WTO

The EC Requires The US To Cancel Duties On Exports From The EU After Airbus Meets The Requirements Of The WTO

The European Commission requires the United States to immediately cancel duties on exports from the European Union after the Airbus Corporation fully met the requirements of the World Trade Organization (WTO) in terms of reducing state investment, changing the terms of the agreement with the authorities of France and Spain on the project of a new series of passenger aircraft A350, according to the EC statement issued on Friday in Brussels.

"This means that the EU and the relevant member States-France, Spain and Germany, also known as the "Airbus member States"-fully comply with the WTO decisions in the Airbus case; this deprives the US of any reason to maintain its countermeasures against exports from the EU and gives a strong reason for a quick settlement of the long-running dispute," it notes.

"Unjustified tariffs on European products are unacceptable, and based on compliance with the requirements in the Airbus case, we insist that the United States immediately cancel these unjustified tariffs," the EC quoted European trade Commissioner Phil Hogan as saying.

Possible EU sanctions

According to the European Commissioner for trade, "the EU has made concrete proposals to achieve a negotiated result in the long-running transatlantic disputes over civil aircraft." "The EU remains open to working with the US to agree a fair and balanced outcome, as well as future rules for subsidies in the aviation sector," he added.

The EC emphasizes that the European Union is ready to resort to sanctions against the United States if Washington refuses to settle the dispute over duties on exports from EU countries in the case of the Airbus Corporation.

"The EU is firmly committed to a negotiated settlement of this long-running dispute, the longest in the history of the WTO. Especially in the current economic environment, the EU believes that it is in the mutual interest of the EU and the US to stop the destructive tariffs that unduly burden our industry and agricultural sector. In the absence of a settlement, the EU will be ready to fully exercise its own sanctions rights," the EC said in a statement.

It states that "the WTO will soon issue its arbitration award in the parallel case of the EU against the United States on certain illegal subsidies to Boeing, in which the Appellate body found the US in violation of its obligations under the WTO." "If the United States chooses to maintain its duties on European exports worth $7.5 billion, or decides to raise tariffs or apply them to new products, the EU will act to exercise its own rights to sanctions based on relevant WTO authorizations once the level of countermeasures is set by the WTO in the case of Boeing. The EU has already held public consultations in April 2019 on the list of products considered for taking countermeasures," the EC added.

Long-standing dispute

The WTO arbitration in early October 2019 allowed the US authorities to impose duties on the EU countries for almost $7.5 billion since the EU did not comply with earlier decisions made by the organization regarding subsidies to the Airbus Corporation. Then British, German, Spanish, and French aircraft, in addition to military equipment, fell into the category of products, duties on which amounted to 10%. In mid-March, the US increased duties on aircraft from the European Union from 10 to 15 percent.

The US is currently continuing negotiations with the EU to conclude a trade agreement. The Washington administration even threatens to impose duties on European cars if the draft document does not suit it. On Friday, Bloomberg reported that the US authorities are considering the possibility of introducing new duties, as well as raising existing tariffs on imports of several goods from France, Germany, Spain, and the UK for a total of $3.1 billion.

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