The World Trade Organization (WTO) has set a $ 4 billion tariff on US products as a retaliation by the European Union (EU) over a subsidy from the US government to Boeing. Approved to impose.
The European Commission, the EU’s executive body, has already prepared a list of items that may be subject to tariff measures. In addition to aircraft, it includes a wide range of items such as wine, spirits, suitcases, tractors and frozen fish.
The European Commission can implement retaliatory tariffs as early as after the WTO meeting on the 26th, but many analysts believe that it will not be implemented just before the US presidential election. Western negotiators have also expressed the view that talks are possible to resolve the 16-year-old problem.
The European Commission then announced its intention to consult with the United States. “We have clearly stated that we want a negotiated solution to avoid a chain of retaliation measures,” said Dombrovskis, senior vice chairman of the European Union, in a statement. “The United States has so far decided. We propose to withdraw tariffs and, in response, the EU to forgo implementation of retaliation measures. “
Last year, the U.S. government imposed import tariffs on $ 7.5 billion worth of European products following the WTO’s approval of retaliatory tariffs on EU subsidies to Airbus. Together, it is one of the largest trade issues surrounding companies in the world.
Boeing points out that the company is following the WTO ruling and there is no basis for the EU to impose retaliatory tariffs. Airbus sought a solution that both sides could agree on.
The Office of the United States Trade Representative (USTR) Lighthizer did not allow the EU to retaliate against Boeing’s R & D subsidies, but focused on Washington’s tax incentives. The state abolished tax incentives earlier this year, pointing out that there is no basis for retaliatory tariffs. “Contrary to the WTO principles, the United States is forced to take countermeasures,” he said.
Reuters reported on September 30 that the WTO has approved EU retaliation measures, sources said. The WTO decision was delayed due to the spread of the new coronavirus infection.
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
