Member States' Trade Ministers met on Tuesday 1st October for an informal meeting on controversial topics regarding trade policy. Just over 24 hours after the publication of the World Trade Organization’s (WTO) decision on the volume of European goods eligible for tariff increases (expected on 2 October at 4pm), the impact of the transatlantic dispute on European support for Airbus - condemned by the WTO - was discussed during part of the Ministers' lunch (see EUROPE 12328/15).
At the end of the next meeting of the Dispute Settlement Body - a special session could be convened by the United States on 14 October - Washington could raise its customs duties on several billion euros of European goods.
The Commission and the Member States have always expressed their openness to an amicable solution whereby the parties would simultaneously settle the twin disputes, with a similar arbitration decision on US support for the US aircraft manufacturer Boeing to follow in just over a half a year's time the Airbus decision.
"Even if we have both made errors and we can put tariffs on each other, this is not a good way", warned Cecilia Malmström, European Commissioner for Trade, at a press conference after the meeting.
Over lunch, Ministers reiterated the need to maintain their unity and firmness on the European line in the face of a Washington sanctions decision, according to some sources.
So far, the EU has mainly put forward a response based on its own list of tariff sanctions, as soon as it knows, in turn, the amount of damage caused by US aid to Boeing (see EUROPE 12238/1) - a response that cannot therefore be applied before 2020.
In the meantime, the EU could therefore consider other options for responding to Washington, including the collection and use of some WTO arbitration awards in favour of the EU, but not used by the EU.
However, the Union seems to reveal some differences as to how any US sanctions decision should be received. Thus, on the side of the EU Council Presidency, Ville Skinnari, Finnish Minister for Foreign Trade, considered, at a press conference, that it was preferable to avoid any tariff escalation. It cannot be ruled out that this could ignite conflict and perhaps encourage new tariff sanctions on imports of European cars across the Atlantic.
Jean-Baptiste Lemoyne, French Minister of State for Trade, has another opinion. "If the United States goes down this path, we will also explore the possibilities offered by the law. "There are both decisions to come, but also past decisions, everything deserves to be looked at", he said at the release.
The next Trade Ministerial Session on 21 November will allow Member States to adopt a formal position on these issues.
Until then, "the phones will get hot", Lemoyne admitted. (Original version in French by Hermine Donceel)