The European Commission has identified US$20bn worth of US imports on which it could impose additional tariffs in a tit-for-tat reaction to proposed measures outlined by Washington earlier this month – but while handbags and cotton are listed, other textiles and clothing are not.
The US listed products including sweaters, anoraks, suits and swimwear imported from Europe among products that could be hit by US$11.2bn in additional duties this summer as part of an escalating trade row over aircraft subsidies at the World Trade Organization (WTO).
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Brussels’ move comes after the WTO’s Dispute Settlement Body on 11 April 2019 confirmed confirmed US subsidies to aerospace business Boeing continue to cause significant harm to European rival Airbus, including lost sales.
However, defending its move the US cited a WTO appellate report in May 2018 finding that European Union (EU) subsidies to high-value, twin-aisle Airbus aircraft have caused serious harm to US interests.
The European Commission is now seeking comments on its list until 31 May to gather feedback from stakeholders who may be affected by the planned measures.
“We must continue to defend a level-playing field for our industry,” says EU trade commissioner Cecilia Malmström. “But let me be clear, we do not want a tit-for-tat. While we need to be ready with countermeasures in case there is no other way out, I still believe that dialogue is what should prevail between important partners such as the EU and the US including in bringing an end to this long-standing dispute.”
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By GlobalDataThe EU’s preliminary list of US products being considered for countermeasures includes cotton, garnetted stock of cotton, and cotton waste (excluding yarn waste, thread waste and garnetted stock).
The Commission adds it is up to a WTO-appointed arbitrator to determine the exact appropriate level of these countermeasures.
