US threatens tariffs on EU products in retaliation for Airbus subsidies

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Visitors inspect an Airbus SE A380 model at an aircraft manufacturer's factory showroom in Toulouse, France on Wednesday, March 20, 2019. Photographer: Balint Porneczi / Bloomberg via Getty Images

The US Trade Representative on Monday proposed a list of EU products, ranging from large commercial aircraft and their parts to dairy products and wine, which could be subject to tariffs in retaliation for subsidies. granted to European aircraft.

USTR said it was beginning the process of retaliation for more than $ 11 billion in damages caused by EU subsidies to Airbus, which the World Trade Organization deemed to be causing "adverse effects" on the United States.

The European Union and the United States have been fighting for more than a decade of mutual claims of illegal aid to the Boeing and Airbus giants, as well as cases parallel to the # 39; WTO. Both parties were arrested paying billions of dollars in subsidies to gain a global jet advantage.

The USTR decision marks an escalation of tensions as the United States seeks to apply high tariffs on a range of EU products. The EU has left most of its grants untouched and has launched additional help since the challenge, the USTR said.

"Our ultimate goal is to reach an agreement with the EU to put an end to all the WTO-binding subsidies granted to large civil aircraft.When the EU will end these harmful subsidies, additional US duties imposed in response may be waived, "said US Trade Representative Robert Lighthizer in the statement.

The WTO announced last year that it would assess a US request to impose multi-billion dollar sanctions on European products in response to a decision that the EU would have distributed illegal subsidies to the giant of the aircraft.

The United States estimated the value of these subsidies at $ 11.2 billion in trade, although the EU has disputed this estimate.

The USTR said it would announce a final list of products after a WTO arbitrator assesses the claims. The result is expected this summer, the statement said.