USA will review duties on goods of EU dispute over aviation subsidies

The United States on Wednesday stepped up pressure on the European Union in the framework of the 16-year-old dispute over aircraft subsidies, signalizing a possible change in duties on goods of the EU.

The world trade organization (WTO) in October gave Washington the green light to the introduction of duties on imports from the EU worth $7.5 billion of illegal subsidies to aircraft manufacturer Airbus.

Now the WTO have to make a decision on duties on the part of the block within the parallel case of improper support for Boeing (NYSE:BA).

Office of the U.S. trade representative added to the list of European goods, the import of which can be entered duty products worth $3.1 billion, including olives, beer and gin, and reported that it was able to switch to other products that are made to the previously published list, or to further raise existing tariffs.

Britain on Wednesday urged Washington not to impose additional tariffs, warning that mutual action would damage business on both sides of the Atlantic.

The representative of the European Commission said the approach of Washington will exacerbate problems caused by a coronavirus, and even “go beyond what is permitted by the WTO.” A top priority remains finding a solution through negotiations, he said.

A new step USA is part of the “carousel” approach, aimed at maintaining pressure on the EU to achieve an agreement and end a dispute that began in 2004.

Both sides won a partial victory in the WTO and expressed interest in resolving the dispute, but expect final decisions, according to sources familiar with the process.

WTO had to make a decision about the European duties in may or June, but due to coronavirus crisis, this may not happen before September, said two people familiar with the case. Another source said that the decision could be delayed until October.

The WTO declined to comment.

S: REUTERS