EU threatens to retaliate.
The world trade organization (WTO) officially allowed the US government to impose punitive duties on imported EU goods. Duties may reach 100 percent, and the total amount of taxable of goods will amount to 7.5 billion dollars annually, reported the press service of the WTO Wednesday, October 2nd. The decision in favor of the United States was expected, the Agency said AFP. Background it is a long-standing dispute over subsidies to the European aircraft manufacturer Airbus from the European Union and its American competitor Boeing, from the United States. Washington and Brussels accuse each other, calling the subsidies the opposite side of illegal, reports the Chronicle.info with reference to DW.
The US plans to impose duties on aircraft and aviakomplekt, as well as a range of food products including cheese, olive oil, oranges and flour. In 2018, the American side has already imposed duties on European products from steel and aluminum. According to the Institute for world economy (IfW) in Kiel, Germany, the loss of which will amount to 2 billion euros per year, can be among the most affected by the new duties. In total, the EU will lose about 7 billion euros per year.
European Commissioner for trade Cecilia malmström stated that it would be “shortsighted and counterproductive” if the US does impose a permitted WTO duties. According to her, in this case Brussels will have no choice but to respond in kind.
“We will wait and see what will make the US administration,” — said in turn the German Chancellor Angela Merkel.
11 APR 2019 WTO issued the final report on the dispute over Boeing, acknowledging that the subsidies in the amount of U.S. $ 12 billion violated the principle of fair competition with the European Airbus and inflicted considerable damage.
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Complaints about the legality of subsidies received by Boeing from the US and Airbus from the European Union, was sent to the WTO in one day — 6 October 2004. In may 2018, the WTO recognized the EU subsidies for Airbus by the infringement of the interests of Boeing, the US then the EU has threatened punitive measures.