WTO Decision on EU Duties for US goods Expected in Coming Weeks
The decision of the World Trade Organization (WTO) on the possibility of the European Union to impose additional duties on certain goods from the United States due to a dispute over subsidies for Boeing is expected in the coming weeks, wrote Timme Spakman, ING economist in his note.
He recalled that last year the WTO allowed the United States to impose duties on goods from the EU for $ 7.5 billion in the framework of the case on subsidizing the European Airbus.
The EU has won in a parallel WTO affair to subsidize Boeing by Washington, and is awaiting permission to impose US $ 11.2 billion worth of duties on American products, the expert wrote.
“A WTO decision on a request for an EU response is expected within a few weeks,” said Spakman.
He commented on the fact that the US is considering introducing $ 3.1 billion in new duties on imports of certain goods from the EU. « Although from an economic point of view, the new tariffs are not so significant – $ 3.1 billion – this is only 0.02% of EU GDP, they can be very painful for individual companies, » said the expert.
In his opinion, this could provoke a new wave of tariff war, when the retaliatory actions of the parties go beyond what they were allowed by the WTO.
The Bloomberg Agency, citing the Office of the US Trade Representative, wrote that the agency, in particular, wants to introduce new duties on imports from France, Germany, Spain and the UK that left the EU of goods such as olives, gin, beer, as well as increase existing fees from imports of European cheese, yogurt and aircraft.
In addition, according to the agency, the increase in fees will affect European luxury brands such as Givenchy and Hermes, which produce leather goods, as well as a number of companies producing champagne and cognac, in particular LVMH (Moet Hennessy – Louis Vuitton) especially vulnerable, as it produces a wide range of these products.