February 15, 2020

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The United States raises tariffs on European aircraft engaged in ongoing subsidy disputes

WASHINGTON (Reuters) – Friday, said it would increase tariffs on European Union imported aircraft to 15% from 10%, putting pressure on Brussels in a nearly 16 year transatlantic dispute about aircraft subsidies.

PHOTO FILE: The Airbus logo is pictured at Airbus headquarters in Colomiers near Toulouse, France, November 15, 2019. REUTERS / Regis Duvignau / File Photo

The US Trade Representative's Office said it had stayed on a settlement with the EU on the issue, but it could review its actions if the EU applied its own tariffs in relation to some subvention disputes.

In a statement released late on Friday, USTR said it would make changes to 25% of tariffs imposed on cheese products, wine and other non-aircraft products from the EU, including prune juice from the list. It did not raise the tariff rates on those products, as it had proposed in October.

The higher aircraft tariff will enter into force on 18 March.

US action as President of the US, Donald Trump, who has reached agreement on the Phase 1 trade deal with China, has re-structured its view of restructuring the trade relationship of more than $ 1 trillion US-EU . the economy slows.

EU officials have said they want to negotiate with Washington but they will not be bullied.

Airbus (European plane)AIR.PAhe said the SA move would meet US airlines already facing aircraft shortages and would contribute to efforts to reach a negotiated solution with the European Union in the long-standing dispute.

Airbus said it would continue talks with US customers to "mitigate the effects of tariffs as far as possible" and it is expected that USTR will change, particularly given the threat of EU tariffs on U products. in its own case before the World Trade Organization.

“USTR's decision does not ignore the numerous submissions made by US airlines, highlighting the fact that they – and the US flying public – must eventually pay these tariffs,” said the company. i statement.

EU officials had no immediate comment on Friday news.

The USTR announced in December that it could increase tariff rates of up to 100% and subject additional EU products to tariffs, after the WTO has decided that EU launch aid for Airbus continues. damage to the aerospace industry.

In October, the WTO awarded Washington the right to impose tariffs on $ 7.5 billion for the EU's annual imports against Airbus. Washington then slipped 10% of tariffs on most European Airbus boats and 25% duties on products from cheese to olives and one-malt water, from 18 October.

Boeing said, in a statement, that he was working with Federal State Officials and state officials to “fully surrender to the United States” with WTO controls.

“The EU and Airbus could end these tariffs by removing their legal obligations, removing these illegal subsidies, and addressing their ongoing harm. We hope they will, ”said the company in a statement.

Wine & Spirits Wholesalers in America (WSWA) said it is still against the tariffs for wine and spirits of European origin, and urged US and European trade officials to end a trade dispute. was reducing income.

A study commissioned by the group estimated that the 25% tariffs applied in October could result in the loss of almost 36,000 jobs in the alcohol industry.

The US Distressed Spirits Council said companies and consumers on both sides of the Atlantic were affected by tariffs relating to alcoholic beverages.

He said new US government data showed that US spirit industry exports to the EU, their largest export market, fell by 27% in 2019 from a year earlier, while global American water exports fell by 16% over the same period. .

“We urge both sides to resolve these disputes so that consumers can enjoy #ToastsNotTariffs,” the group said.

Reporting by Andrea Shalal and Makini Brice; Edited by Daniel Wallis

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