EU wins approval to target $4 billion U.S. imports over Boeing subsidies
Reuters
Published Oct 13, 2020 04:03AM ET
Updated Oct 13, 2020 10:43AM ET
By Philip Blenkinsop and Tim Hepher
BRUSSELS/PARIS (Reuters) - The European Union won the right to impose tariffs on $4 billion of U.S. goods on Tuesday in retaliation against subsidies granted to planemaker Boeing (N:BA), expanding a dispute that has already seen Washington put border duties on EU imports.
The World Trade Organization tariff award, which confirms a decision first reported by Reuters on Sept 30, threatens to exacerbate transatlantic trade tensions with just three weeks until the U.S. presidential election on Nov. 3.
However, negotiators on both sides say it could also lead at last to discussions to resolve a 16-year legal battle.
Both the United States and the EU have signalled interest in settling the dispute over subsidies each provided to their respective planemakers, Boeing and Airbus (PA:AIR), while accusing the other of refusing to talk seriously.
Tuesday's decision, delayed by the COVID-19 pandemic, follows a WTO ruling last year allowing Washington to impose tariffs on $7.5 billion in EU goods over state support for Airbus, which has sites in Britain, France, Germany and Spain.
Combined, the two cases represent the world's largest ever corporate trade dispute.
The state of Washington has since moved to repeal tax breaks that benefited Boeing, while Airbus has announced it will increase loan repayments for the A350 plane to France and Spain in bids to settle the matter.
Sources on both sides say they want their industrial rivals to go further before agreeing to bury their differences.
The European Commission has said it would prefer a negotiated solution, but would impose tariffs without one.
It has already drawn up a list of U.S. products it could target including planes, wine, spirits, suitcases, tractors, frozen fish, and produce from dried onions to cherries.
The earliest it could act is after a WTO meeting on Oct 26, but few analysts expect it to do so before the U.S. election.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.