The trade dispute between the EU and the USA has reached a new level. This time it’s by airplanes. And swimwear, dairy products, binoculars, olive oil, oranges, wine, or seafood. Because these products of everyday life are on a list of EU goods, which will soon be charges in the amount of around eleven billion US dollars (9.8 billion euros) are to apply. The corresponding 14-page document, the US trade representative Robert Lighthizer published, U.S. President Donald Trump it sekundierte in the usual manner, with a Tweet: “The EU has taken advantage of the US in the trade for many years. Soon is the end of it.“
the reason for the new escalation, however, are not everyday products, but since the years of simmering conflict over subsidies for aircraft manufacturers Airbus and Boeing. Europe and the United States accuse each other to promote their respective air carriers unlawful. But the Momentum is on the side of the Europeans: by the end of March, the United States had suffered in the last instance, before the world trade organization (WTO), a mere. The US government have not taken, as required, any and all tax incentives for the US aircraft manufacturer, had notified to the WTO appellate body at the time. The decision had also made the way for EU retaliation.
in 2018, it had looked different. At that time, the world had judged trade organization in favor of the United States. They found that the EU had not fulfilled the requirement, all appropriate aid for Airbus. The United States still see it that way. 2012, in turn, a number of state-owned billion in aid had been classified in the United States for Boeing illegal. The conflict has been brewing since 2004.
Trump threatens still with the duties applicable to BMW and Mercedes
The EU Commission, which looks out on the basis of the recent judgment in the law, prepares according to their own statements against the measures. She referred to the threatened duties as a “heavily plated”. The US trade representative values referred to are based only on internal estimates of the United States, which had not been of the WTO created, said a Commission spokesman.
The spiral of the trade dispute is turning. The U.S. government had already collected in the past year, customs duties for European steel and aluminum imports, and the EU responded with higher tariffs on U.S. products such as of whisky, and Jeans. Trump threatens also to special duties on cars from the EU, the impact would be on BMW, Daimler and VW.
last summer, the EU had achieved – President of the Commission Jean-Claude Juncker, however, a kind of truce: He and Trump agreed in preliminary talks for a trade agreement to industrial goods, including cars. The EU pledged to increase its imports of liquefied natural gas and soybeans from the United States.
in Parallel to the threats, both sides ready to give in the current case, compromise. Lighthizer said that the US wanted an agreement with the EU, an end to all subsidies for aircraft, the wounded, the rules of the WTO. The EU should stop from the U.S. point of view, unauthorized aid, could the additional retaliatory duties on EU Goods shall be repealed.
German economy is concerned
The Federal Ministry of economy, the EU is interested in an amicable solution. “The EU is open to the offer of dialogue to the United States, to come to a fair solution,” said a spokeswoman. However, the WTO will decide in the summer on the case and also about the scope of possible sanctions. Airbus fights back, however, against the accusation of unjustified subsidies. There is no legal reason for the of the United States announced retaliatory measures, informed by the aircraft manufacturer. Its extent was greatly exaggerated, and to determine not from the USA, but is of the world trade organization.
In the German economy, the escalation creates tension – the USA is the largest buyer of Goods “Made in Germany”. “Punitive tariffs are not a solution to the problem, but only lead to a spiral of foreclosure,” said Ulrich Ackermann, the Association of machinery and plant manufacturers (VDMA). DIHK President Eric Schweitzer said the United States and Europe, should now keep a cool head and on de-escalation. “For both sides, there is nothing to gain.” The stock market was already felt yesterday, in which the direction of a trade dispute, the courses would press. The Airbus title, lost about two percent. Also, documents from suppliers and luxury goods companies were under pressure, as well as that of Boeing.
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WTO ruling EU subsidies for Airbus are illegal
Specifically for the US aircraft manufacturer, the new crisis at an inopportune time. Since the crashes of two 737 – MAX-engine aircraft of this type are no longer allowed to lift off world-wide. As a consequence, Boeing was forced to reduce already production. Although the company is working on a software update that has to approve the US-aviation authority FAA. This may take to weeks. (AFP/rtr/dpa)
