After 15 years of litigation in the World Trade Organization, the United States has won arbitration against the European Union related to illegal subsidies granted to Airbus. It was determined that the EU, by providing massive subsidies to Airbus, seriously injured the U.S. aerospace industry. The $7.5 billion award is the largest in WTO history; and under WTO rules is the final decision, not subject to appeal.
In an effort to take countermeasures against the EU, the US has requested a meeting with the WTO for approval of new tariffs targeting specific countries within the European Union. Pursuant to WTO rules, the WTO will provide automatic authorization at that meeting. The EU will not be allowed to retaliate against these countermeasures.
The tariffs will be applied to a range of imports from EU member states, with the bulk being applied to imports from France, Germany, Spain, and the UK- the four countries responsible for the illegal Airbus subsidies.
Please visit the links below for additional information and a list of products that will be subject to additional duties:
https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/october/us-wins-75-billion-award-airbus
https://ustr.gov/sites/default/files/enforcement/301Investigations/EU_Large_Civil_Aircraft_Final_Product_List.pdf
As always, OTS will keep our customers updated with any news developments. Please contact your sales representative with any questions relating to these tariffs.