WTO Allows U.S. Tariffs on EU Exports

World Trade Organization

CBJ — The World Trade Organization says the United States can impose tariffs on up to $7.5 billion worth of goods from the European Union as retaliation for illegal subsidies that the bloc gave to plane-maker Airbus.

The decision by the WTO sides with the Trump administration’s desire to slap countermeasures on the 28-member bloc and follows a ruling in May of last year on the Airbus subsidies.

Next up WTO arbitrators are expected to rule on how much the EU can impose in tariffs following a separate decision that went against Boeing. Those proceedings are likely to occur early next year.

The U.S. has already announced plans to impose tariffs on EU cheeses, olives, whisky, as well as aircraft and aircraft parts.

The U.S. government has been demanding reform of the WTO, and has been blocking new appointments to its crucial Appellate Body — which could be rendered inactive in December unless the U.S. gets its way.

@CanBizJournal

 

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