The dispute between the European Union and the U.S. started a long time ago. The EU will impose tariffs on up to $4 billion worth of U.S. products on Monday. The bloc made the decision due to a lack of progress from America on resolving a long-standing dispute over aircraft subsidies.
As mentioned earlier, the dispute between the EU and the U.S. started a long time ago, more precisely in 2006. People should take into account that, the World Trade Organization (WTO) agreed in 2019 that the EU did not follow the best trade practices when granting aid to Airbus. The U.S. imposed duties on $7.5 billion of imported goods from Europe, but this is not the end of the story.
In October, the WTO ruled against the U.S. According to the WTO, the U.S. did not comply with international rules regarding the subsidies to Boeing. Consequently, the EU made the decision to impose up to $4 billion in tariffs.
It is worth noting that, from the beginning, the EU wanted to settle this dispute. However, due to the lack of progress from the U.S. side, the EU decided to impose countermeasures awarded to the bloc by the WTO.
European Union and imported goods
Importantly, Europe’s trade chief Valdis Dombrovskis discussed this issue on Monday during a press conference. Based on the information provided by Europe’s trade chief, the list of the new tariffs will be published in several hours and will come to an effect on Tuesday.
People should take into consideration that, despite the decision to impose tariffs, the European Union wants to overcome the dispute as soon as possible. Interestingly, the EU is ready to remove the duties if the U.S. does the same.
Interestingly, a win by Joe Biden is seen as a positive development in this particular dispute over aircraft subsidies. Importantly, the EU wants to discuss a number of issues with Biden. The key areas are WTO reform and trade, as well as climate change. Moreover, the European Union wants to work with the U.S. to establish a trade and technology council. The purpose of this council will be to cooperate on new technologies as well as digital services. Also, the bloc wants to solve issues regarding the regulations and standards.
The European Union should work with the U.S. to solve issues as soon as possible. The new administration in Washington has the opportunity to remove duties on EU goods. In return, the EU will also remove tariffs. Both sides should work together to reach this goal.