Updated October 18th, 2019 at 10:56 IST
United States imposes record $7.5 billion tariffs on European goods
The United States imposed tariffs worth $7.5 billion on European goods on Oct 18. Airbus, French wine and Scottish whiskeys are among the high profile targets.
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The United States imposed tariffs worth $7.5 billion on European goods on October 18. Airbus, French wine and Scottish whiskeys are among the high profile targets that will be affected by the taxes. These tariffs took effect at 0001 in Washington and were imposed despite the request from the European officials to reprieve it last minute along with the warning of retaliation from the Economy Minister of France, Bruno Le Maire. The World Trade Organisation ruled that the US can impose tariffs on European goods annually because the European government had given illegal subsidies to Airbus.
Read - Europe’s Specialty Food Makers Brace For US Tariffs
WTO authorized
The World Trade Organisation's dispute settlement body had representatives from its 164 members which had cleared that Washington can take legitimate countermeasures against the EU and other Airbus producing countries like Britain, France, Germany, and Spain. The authorization of October 2 by WTO was reportedly a formality after an arbitrator awarded a record right to retaliate over the subsidies this month, which could only be denied if all members of the WTO had voted against. Moreover, the meeting had lasted only 20 minutes.
Members give US green light to impose countermeasures on EU in aircraft subsidy dispute #TradeDisputes https://t.co/mRuPYEgnYo pic.twitter.com/6J4uX0Lh9k
— WTO (@wto) October 14, 2019
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Washinton preferred a negotiation
Dennis Shea, the US trade ambassador said in the meeting even after WTO authorized for tariffs, Washington reportedly still preferred negotiation to find a solution. Shea further reportedly said that peaceful conversation could only take place if the EU sincerely terminates the benefits given to the Airbus with the current subsidies and ensure that the subsidies will not be revived under any other name or mechanism. However, the European delegation had said in the meeting that it had “serious concerns” and moreover the US tariffs measures were improvident. According to WTO, it has found out that both the European Airbus and US' Boeing had received illegal subsidies worth billions of dollars in a couple of cases that have been going on for nearly 15 years. However, the Boeing case will be reviewed by the members in early 2020.
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Read - British PM Urges Trump To Not Impose Tariffs In Airbus-Boeing Row
(With inputs from agencies)
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Published October 18th, 2019 at 10:39 IST
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