Boeing Jets, Other U.S. Goods Worth $4 Billion Face EU Tariffs
November 09 2020 - 9:15AM
Dow Jones News
By Laurence Norman and Daniel Michaels
BRUSSELS -- The European Union will impose tariffs on $3.99
billion of Boeing Co. jets and other U.S. goods annually as part of
a long-running trade dispute, the bloc's trade chief said
Monday.
The EU had delayed imposing the tariffs since the World Trade
Organization ruled in the bloc's favor on Oct. 13 preferring not to
proceed with tariffs before the U.S. election. Some officials had
also suggested waiting until a new U.S. administration was in place
in January.
EU trade officials instead decided instead to make the move --
which is likely to be seen as hostile in the U.S. -- while Mr.
Trump is still president. The tariffs are expected to come into
effect within hours.
The EU action comes after the U.S. imposed tariffs following a
WTO decision in October 2019 authorizing tariffs on $7.5 billion in
Airbus SE jets and other imported European products, the largest
arbitration award in WTO history.
The issue was one of several trade clashes that have strained
trans-Atlantic ties under the Trump administration, although the
jetliner dispute stretches back nearly two decades.
The bloc still hopes for a negotiated settlement with the U.S.
and will be ready to withdraw the tariffs quickly if one is found,
EU Trade Commissioner Valdis Dombrovskis said Monday.
"The U.S. has imposed tariffs following the WTO ruling in the
Airbus case," he said. "Now, we have a WTO ruling also in our
Boeing case, allowing us to impose our tariffs and that's what we
are doing."
Mr. Dombrovskis said EU officials had been in contact with the
team of President-elect Joe Biden, including on trade issues.
Last year, the bloc prepared a preliminary list of U.S. products
to target in retaliation, if necessary, including aircraft,
chemicals, frozen fish and tobacco.
The jetliner dispute is the longest since the WTO's inception.
In 2004, the U.S. took European countries to the WTO over subsidies
to Airbus, and Europe responded soon after with a case against U.S.
support for Boeing.
WTO rulings since then have found that both sides provided
prohibited subsidies, but Europe did so to a greater extent. The
WTO's October pronouncement ended years of suits and countersuits
and left the two sides with the choice of negotiating a solution or
fighting a protracted trade battle.
EU officials have said they are hopeful that a settlement can
be
negotiated with the outgoing Trump administration's trade teams.
The EU has been in talks with U.S. Trade Rep. Robert Ligthizer in
recent days.
A solution could allow the EU and the U.S. to start on a
forward-looking trade agenda once the new administration takes
office, without having the Airbus-Boeing dispute pending.
Mr. Lighthizer, the top U.S. trade negotiator, said last month
the EU has "no lawful basis to impose tariffs" because the
subsidies for Boeing have already been repealed. He suggested the
U.S. would consider retaliating if Brussels moved forward with
tariffs.
"Any imposition of tariffs based on a measure that has been
eliminated is plainly contrary to WTO principles and will force a
U.S. response," he said.
European officials say they can levy an additional $4 billion in
tariffs based on a previous finding of other U.S. violations, which
would be on top of the $3.99 billion awarded last month. EU trade
ministers met Monday to discuss the decision to move ahead with the
tariffs.
Write to Laurence Norman at laurence.norman@wsj.com and Daniel
Michaels at daniel.michaels@wsj.com
(END) Dow Jones Newswires
November 09, 2020 09:00 ET (14:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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