Eu introduces new punitive duties on us products

Eu introduces new punitive duties on us products

The EU is introducing new punitive tariffs on goods from the US, despite the imminent change of power in the white house.

The special levies approved by the world trade organization (WTO) for illegal subsidies for the U.S. Aircraft manufacturer boeing will take effect this tuesday and are intended to bring the U.S. Back to the negotiating table in the transatlantic dispute over subsidies for the aviation industry. They are also a clear signal to the future US president joe biden, who, like the current president donald trump, is backing an "america first" economic policy.

Trump had repeatedly failed to take advantage of offers to talk about the subsidy dispute and had already imposed punitive tariffs on products from the EU last year because of unauthorized subsidies for the european aircraft manufacturer airbus.

The 25 percent U.S. Tariffs imposed for illegal subsidies for airbus affect, for example, wine from germany and france, parmesan from italy and olivenol from spain. There is a special levy of 15 percent on aircraft imports.

The eu is not interested in escalating the conflict, eu vice commission president valdis dombrovskis stressed on monday on the occasion of the announcement of the punitive measure. The EU is only exercising its rights. The U.S. Tariffs have already been in force for a year.

The exact list of the goods should be published late monday afternoon in the EU official journal. It is certain that there will be a special duty of 15 percent on the import of US aircraft. Dombrovskis also spoke of agricultural and industrial products. Earlier, the eu said it could impose european duties on products such as tomato ketchup, wine and game consoles, but also on u.S. Tractors, helicopters, nuts and chocolate.

Federal economics minister peter altmaier (CDU) said that the EU would have been very pleased if an amicable settlement could have been found before the american presidential election. "This was not possible."The eu will not know until february or march who exactly will have "procuration" in a biden administration.

Immediately after the WTO decision in mid-october, the EU announced that it would first explore the possibility of a negotiated settlement with the trump administration.

Altmaier and dombrovskis stressed that the eu remains ready for negotiations. If the USA withdraws or suspends its tariffs because of subsidies for the european aircraft manufacturer airbus, the eu will do the same.

The basis for the EU’s now announced action is a WTO notification from last month. In mid-october, their arbitrators decided that the EU could impose punitive tariffs on US imports worth almost four billion dollars (3.4 billion euros) a year because of illegal subsidies for the US aircraft manufacturer boeing.

In a similar case, arbitrators had already authorized the u.S. To impose punitive tariffs of $7.5 billion on eu products for illegal subsidies to airbus. The special levies are intended to compensate for the competitive disadvantages caused by the subsidies.

Altmaier stressed that the EU hoped for a new beginning in transatlantic relations, which had been marked by conflict under trump. "We want to get back to an active transatlantic trade agenda as soon as possible and gradually," he said, referring to biden’s election victory.

In this context, altmaier also mentioned the special US tariffs on steel and aluminum imports introduced by trump, to which the EU has also responded with retaliatory tariffs on US products. Trump introduced these levies because he considers the export surplus of the EU countries against the USA to be unfair and dangerous for the security of his country.

The goal must be to reduce tariffs across the board, not to increase them, altmaier said. This could also give a boost to the corona-plagued german economy and secure jobs. The USA is the largest single market for the export of goods "made in germany".

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