As President Trump announced, the United States has taken measures to penalize the European Union (EU) if it continues to subsidize aeronautics manufacturer Airbus. In fact, on April 9, the United States Trade Representative (USTR) published a preliminary list of European products that could be surtaxed as early as this summer. This list amounts to approximately $11 billion U.S., the amount of money that the United States estimates is losing as a result of EU subsidies to Airbus. You can find the preliminary list issued by the USTR here.

EU response

In response to the publication of the USTR’s preliminary list, the European Commission has also issued a preliminary list of U.S. products that could be surtaxed. This list amounts to approximately $12 billion U.S. You can find this list here. A public consultation was also launched in the EU until May 31 to consider the views of the industries affected by these surtaxes.

Boeing vs. Airbus

It should be recalled that the United States and the EU have been battling at the World Trade Organization (WTO) for several years. In fact, the U.S. government accuses the EU of subsidizing aeronautics manufacturer Airbus and the EU accuses the United States of subsidizing the aeronautics manufacturer Boeing. The WTO ruled in 2010 and 2011 that both parties were providing illegal subsidies and that both parties would be entitled to compensation. The WTO has not yet rendered its opinion on the compensation that should be awarded. 

Negotiations between the United States and the EU

At the same time as these surtax threats, the two parties have recently started negotiations for a trade agreement that would aim, among other things, to eliminate customs duties on industrial products or to prevent the introduction of new surtaxes. During negotiations, the EU seeks the United States to eliminate surtaxes on European steel and aluminum imports and also wants to prevent the United States from imposing surtaxes on European car imports.

Questions?

For any additional information, our consultation service remains at your disposal at consultations@w2c.ca or by telephone at 514 368-2637, option 2. 

To find out more: 

Agence France-Presse (2019, 9 avril). « Trump dit vouloir taxer 11 G$ de produits de l’Union européenne ».Sur le site ici.radio-canada.ca.

Agence France-Presse (2019, 10 avril).« Menaces de taxes de Trump : l’UE compte répliquer ».Sur le site lapresse.ca.

Agence France-Presse (2019, 17 avril).« Subventions à Boeing : l’UE prévoit d’imposer jusqu’à 12 milliards US de taxes en riposte ».Sur le site lapresse.ca.

Etwareea, Ram (2019, 9 avril).« Donald Trump relance la guerre Airbus-Boeing ».Sur le site letemps.ch.

Le Figaro avec Reuters (2019, 17 avril) « Bruxelles publie la liste des produits Made in USA susceptibles d’être taxés ».Sur le site lefigaro.fr.

Moulas, Capucine (2019, 19 avril).« Les États-Unis menacent le fromage, l’Europe attaque le ketchup ».Sur le site frenchmorning.com

Petitjean, Sophie (2019, 16 avril).« Lancement imminent des négociations commerciales entre l’Europe et les États-Unis ».Sur le site lemonde.fr.