login
login
Image header Agence Europe
Europe Daily Bulletin No. 12352
Contents Publication in full By article 16 / 23
EXTERNAL ACTION / United states

Under tariff sanctions on Airbus, EU says it has no choice but to retaliate

While Washington's decision on Friday 18 October to impose tariff sanctions on the 6.7 billion euros worth of imports of European products, authorised by the WTO in the dispute against the European aircraft manufacturer Airbus, took no one by surprise, the reactions on the European side are bitter (see EUROPE 12350/17, 12348/7, 12346/11).

"We regret the choice of the U.S. to move ahead with tariffs" (of 10% on aircraft and 25% on the rest), said Cecilia Malmström, European Commissioner for Trade, in a press release.

"This step leaves us no alternative but to follow through in due course with our own tariffs in the Boeing case, where the U.S. has been found in breach of WTO rules", Mrs Malmström warned (see EUROPE 12238/1, 12233/15)

The same is true of MEP Christophe Hansen, EPP coordinator (centre-right) in the Parliamentary Committee on International Trade: "I regret U.S. chose tariffs over talks, refusing a common solution to a common problem", he said via Twitter. "Our response will be firm", confirmed the Luxembourg MEP.

Farmers' alarm bell ringing

The agri-food sector is primarily targeted by these sanctions - in particular the wine, cheese and olive oil sectors.

Several Agriculture Ministers, meeting in Council on 14 October, have already asked the Commission for assistance to enable them to cope (see EUROPE 12349/15).

The French Ministry of Agriculture issued a press release on the same day, deploring the "severe" taxation of French wines and calling for a "firm and united response to U.S. sanctions". The United States represents nearly 20% of all French wine exports, the Federation of Wine and Spirits Exporters (FEVS) added in a statement, calling for "immediate implementation of the necessary support measures".

"Compensatory aid (to farmers) must be activated as soon as possible by strengthening programmes to promote agricultural products in non-Member States and by granting aid to farmers", said Coldiretti, Italy's leading agricultural organisation.

"The Commission will monitor the impact (...) on the European products concerned, notably in the agricultural sector", promised Mrs Malmström.

A taste of waste

If the outcome of this long-running dispute, which began more than 15 years ago, is therefore particularly negative for the EU, it is also negative for multilateral trade.

In view of the Chinese disruptive factor, it could be possible to expect the two economic powers to cooperate in order to guarantee their economic operators a level playing field, in particular as regards the terms of the support that could be granted to aircraft manufacturers.

It is therefore above all a statement of failure for transatlantic diplomacy.

However, Mrs Malmström assured that the EU was keeping a hand extended to Washington towards a move in this direction. (Original version in French by Hermine Donceel)

Contents

EUROPEAN COUNCIL
SECTORAL POLICIES
ECONOMY - FINANCE - BUSINESS
INSTITUTIONAL
EXTERNAL ACTION
NEWS BRIEFS
ADDENDUM
The B-word: Agence Europe’s newsletter on Brexit
CALENDAR
CALENDAR EXTRA