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The United States has won the largest arbitration award in World Trade Organization (WTO) history in its dispute with the European Union over illegal subsidies to Airbus. The award of $7.5 billion annually is by far the largest award in WTO history—nearly twice the largest previous award.
The tariffs will be applied to a range of imports from EU Member States, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies. Although USTR has the authority to apply a 100 percent tariff on affected products, at this time the tariff increases will be limited to 10 percent on large civil aircraft and 25 percent on agricultural and other products including certain pork products, whiskeys and cheeses ( list of products subject to additional duties ).
Spain, Germany, France and the United Kingdom are the most affected countries.
The effective date of the additional duties is October 18, 2019.
The United States has requested that the WTO schedule a meeting on October 14th to approve a U.S. request for authorization to take countermeasures against the EU. Pursuant to WTO rules, the WTO will provide this authorization automatically at that meeting. The EU is not allowed to retaliate against WTO-authorized countermeasures.
Following the publication of the WTO decision, the European Commissioner for Trade, Cecilia Malmström, has stated that "Our readiness to find a fair settlement remains unchanged. But if the U.S. decides to impose WTO authorized countermeasures, it will be pushing the EU into a situation where we will have no other option than to do the same.”
Thursday October 3, 2019/ 333’s editorial office from data by EU, WTO and Office of the US Trade Representative.
