admin The U.S. government on Monday increased pressure on Europe in a prolonged dispute over aircraft subsidies, threatening tariffs on $4 billion of additional EU goods.
The U.S.T.R.(The U.S. Trade Representative) released a list of products which includes Italian cheese, Scotch whiskey, and olives that could be hit with tariffs, on top of products worth $21 billion that were announced in April.
The United States and the EU have susceptible to impose billions shuffling over tariffs on planes, tractors, and food in a nearly 15-year dispute at the World Trade Organization over aircraft subsidies given to European Airbus and to its rival, U.S. planemaker Boeing.
USTR added 89 tariff sub-categories to its initial list, consisting variety of metals. Over 40 individuals testified about products included on the initial list at a public hearing on May 15 and 16.
Senior officials from Boeing and a U.S. aerospace trade group urged the U.S. government last month to narrowly tailor any tariffs imposed on the EU over illegal aircraft subsidies to avoid harming American manufacturers.
Monday’s move followed news during the Paris Air Show that the United States could be open to negotiations on an enforceable mechanism that could allow Airbus to receive government funding on commercial terms, potentially paving the way for an end to the aircraft subsidy fight.
Two U.S. sources said ,such a deal would also include moves by the United States to address tax incentives provided by Washington state to Boeing and make them compliant with trade rulings, as part of a possible new framework for aircraft industry fundingThe WTO has found that the world’s two largest planemakers received billions of dollars of harmful subsidies in a pair of cases marking the world’s largest-ever corporate trade dispute.
USTR said it would hold a hearing on the proposed additional products on Aug. 5.
It said it could immediately impose increased duties on the products included in the initial list if the WTO arbitrator issued a decision before the public comment period ended on the supplemental list.
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