JAKARTA (TheInsiderStories) – United States (US) government confirmed that it would still impose an import duty of 15 percent for Airbus aircraft and 25 percent for European Union (EU) products, said trade representative (USTR) office on Thursday (08/13). Last year, Washington has impose the tariffs on aircraft and 25 percent of other industrial and agricultural products from the Europe.
“Today, as required by US law, the USTR is issuing a modification to the list of products subject to WTO-authorized additional duties in the United States’ successful WTO challenge to subsidies for large civil aircraft provided by the European Union, France, Germany, Spain, and the United Kingdom (UK),” said ambassador of USTR, Robert Lighthizer, in an official statement.
The modifications announced today will take effect on Sept. 1, 2020. USTR, told Lighthizer, is removing from the tariff list certain products from Greece and the UK and adding an equivalent amount of trade from France and Germany.
The changes are modest the amount of products subject to countermeasures will remain unchanged at US$7.5 billion and the tariff rates will remain unchanged at 15 percent for aircraft and 25 percent for all other products. He rated, that the block did not actually take the steps needed to fulfill the decisions of the World Trade Organization (WTO) and will take a new process as an effort to find long-term solutions to these problems.
“The United States, however, is committed to obtaining a long-term resolution to this dispute. Accordingly, the United States will begin a new process with the EU in an effort to reach an agreement that will remedy the conduct that harmed the U.S. aviation industry and workers and will ensure a level playing field for U.S. companies,” said Lighthizer
In October 2019, the WTO authorized the United States to take $7.5 billion in countermeasures following the largest victory in WTO history in the long-running dispute against the EU, France, Germany, Spain, and the UK regarding their illegal subsidies for the Airbus consortium. Following a notice and comment process, on Oct. 9, 2019, the US imposed additional tariffs of up to 25 percent on products of current and former EU member states with a trade value of approximately $7.5 billion.
The section 301 statute provides for periodic review and modification of the tariff action. A prior revision was made in February 2020.
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