European Union wins tariff clearance on $4bn of United States imports in Boeing case

  • European Union wins tariff clearance on $4bn of United States imports in Boeing case

European Union wins tariff clearance on $4bn of United States imports in Boeing case

This contrasts with the approval last year of taxes on $7.5 billion worth of goods a year being exported to the U.S. from the EU.

European Union officials argue that the same is true of US tariffs imposed against subsidies to the Airbus A380, which is being taken out of production.

US sources say the previous award, allowing the European Union to retaliate against former perks for USA exporters, is no longer valid and that any deal must include verifiable enforcement.

While the ruling is a milestone in the trade body's longest running dispute, the tariffs will either result in negotiations or boil over into transatlantic trade war as the two big plane manufacturers - Boeing and Airbus - battle the slowdown due to the pandemic.

"There's no sense in measures that affect fair trade", he said. "Somebody might benefit, somebody might lose but if there are no tariffs or non-tariff barriers, everybody may benefit but at different levels". That's because the US, unhappy with WTO rulings against its imposition of trade tariffs in other cases, has refused to appoint new judges to the body.

"The EU will immediately re-engage with the United States in a positive and constructive manner to decide on next steps", Dombrovskis said.

The EU says the same is true of US tariffs imposed against subsidies to the A380 superjumbo, which is being taken out of production.

The spirits industry on both sides of Atlantic urged restraint and an end to tariffs.

The decision, which is final and can not be appealed, dates back to 2006 and is part of a string of long-running disputes between the two plane-making giants at the Geneva trade body. Bhanumurthy believes this stems from Trump's idea of protecting the domestic interests. Airbus, however, contends Boeing still is receiving preferential tax treatment.

The award, which partially mirrors USA tariffs on Airbus jets and confirms a decision first reported by Reuters on Sept 30, threatens to stoke transatlantic trade tensions just three weeks before US presidential elections on November 3.

"There could be different situation after elections".

Ole Moehr, an associate director at the Atlantic Council's GeoEconomics Center, told the New York Times the dispute actually could serve as a basis for renewed trade talks after the USA presidential election November 3. Some part of the policies of the USA government could be rhetoric.

"Our strong preference is for a negotiated settlement", Dombrovskis said. Gita Gopinath, the Chief Economist of the IMF, has said that greater global collaboration is needed for sustained recovery and policies must aggressively focus on limiting persistent economic damage from this crisis.