On Wednesday 6 June, the European Commission approved the decision to impose further duties on the full list of US products notified to the World Trade Organisation (WTO) on 18 May, as part of the European Union's response to the raising of US taxes on imports of steel and aluminium products from the EU.
The Commission plans to conclude this procedure in coordination with the member states before the end of June, so that the new duties can start to apply in July, the Commission announced after the college of commissioners' meeting.
These rebalancing measures, which are "fully compatible with the rules of the WTO" under the WTO safeguards agreement, provide for the EU's imposition of additional customs duties on US exports. These duties will be able to reach a sum of €2.8 billion initially, then at a later stage – after three years or before, if the EU wins the case it took to the WTO on 1 June (see EUROPE 12032) – a sum of €3.6 billion, or a potential total of €6.4 billion, corresponding to the sum of the total exports of steel and aluminium products from the EU to the USA in 2017.
"This is a measured and proportionate response to the unilateral and illegal decision taken by the United States to impose tariffs on European steel and aluminium exports. What's more, the EU's reaction is fully in line with international trade law. We regret that the United States left us with no other option than to safeguard EU interests", European Trade Commissioner Cecilia Malmström commented.
Together with the member states, the Commission prepared, then notified the WTO on 18 May, a list of 332 American agricultural, industrial and steel products on which the EU would impose customs duties of 25%, which could rise to 50% from 23 March 2021.
Among the US products targeted are motorbikes, certain textile products including jeans, and agri-food products including bourbon, peanut butter and orange juice.
The member states must now agree on whether the whole list is to be taxed, or just part of it. The definitive list of products is being discussed by national experts in the EU Council trade policy committee (TPC).
"We have received the full support of all the member states on the measures that are proposed today", Commission Vice-President Jyrki Katainen told press on Wednesday.
Katainen repeated that the EU was ready to talk to the USA about a "positive agenda" agreed by the European leaders on 17 May to improve the transatlantic trade environment. This agenda involves tariff talks on industrial products including cars, on the liberalisation of public procurement, on voluntary regulatory cooperation and on increased cooperation in energy, as well as discussions on reform of the WTO (see EUROPE 12022).
"The US administration rejected this offer, but it is still valid. If the Americans want to begin to improve the trade environment, they will still find a friend on this side of the Atlantic", Katainen said. (Original version in French by Emmanuel Hagry)