The decision is the next step in a long-running dispute between Washington and Brussels over support for civil aircraft manufacturers. The European Commission said the move disrupted dispute settlement talks. At the same time, she expressed hope that she would be able to find a quick solution with the new US President Joe Biden.
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The Office of the Trade Representative announced the introduction of additional duties on aircraft components, some still wines, as well as cognacs and other alcoholic beverages from the two European countries mentioned. According to the server The Financial Times the new measures are due to take effect on January 12, just days before Joe Biden takes over the presidency.
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Steps in this spirit were speculated about in the fall after the EU introduced tariffs on imports from the US in response to Washington’s support to Boeing. US Trade Representative Robert Lighthizer said on Wednesday that the Union had set the measures unfairly.
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“The EU must take action to compensate for this injustice,” Lighthizer was quoted as saying by Reuters.
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Brussels is waiting for Biden
The transatlantic dispute over aid to aircraft manufacturers has been going on for 16 years. Prior to the introduction of EU tariffs in support of Boeing, the United States imposed tariffs on European goods due to subsidies by European aircraft manufacturer Airbus. The European Commission said in November that if the new US administration abolished these tariffs, it was ready to negotiate the abolition of EU tariffs.
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In a statement on Thursday, the Commission regretted the new move by the US, which it said “unilaterally” disrupted the negotiations. “The EU will contact the new US administration as soon as possible to continue these negotiations and find a lasting solution to the dispute,” she added.
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Airbus said on Thursday that an increase in tariffs on parts for US-made aircraft would harm US workers and consumers alike, and that the EU should respond adequately to the move to protect its interests.
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Less cognac and jobs
The Federation of French Wine Exporters has stated that additional duties on French wines and cognacs will cost the sector over a billion euros (26 billion CZK). “It’s a real hammer blow in a fight that has nothing to do with us,” said Federation President Cesar Giron. He warned that the new tariffs will have a major impact on sales of cognacs in the US.
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The head of the American Wine Trade Association, Ben Aneff, said that the newly announced increase in tariffs on selected EU goods would bring further complications to American companies, and called on future US President Joe Biden to rectify the situation quickly.
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“This move is a blow to American businesses. American restaurants and small businesses are already struggling to survive. This decision will only destroy more jobs, “said Aneff to increase tariffs.
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This month, German Ambassador to the United States Emily Haber called for a speedy resolution of the dispute over subsidizing aircraft production, which she said diverts attention from more serious problems requiring joint action, such as climate change and the covidu-19 pandemic.
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