EU ‘regrettably’ hits US with tariffs, seeks better ties with Biden

Brussels/Berlin, November 9

The European Union will “regrettably” impose tariffs on imports of $four billion in US items from Tuesday, EU Trade Commissioner Valdis Dombrovskis stated, whereas hoping that President-elect Joe Biden will foster a pointy enchancment in transatlantic ties.

The bloc will train the fitting to counter-measures awarded to it final month by the World Trade Organization in a case towards US planemaker Boeing, a part of a long-running US-EU battle over civil aviation subsidies.

“We have made clear at every stage that we want to settle this long-running issue,” Dombrovskis advised a information convention after a web based assembly of EU commerce ministers on Monday.

However, he stated the bloc would impose tariffs on US exports of planes and components and a spread of farm and industrial merchandise from Tuesday.

“Regrettably, despite our best efforts (and) due to lack of progress on the US side, we can confirm that the European Union will later today exercise our rights and impose counter-measures awarded to us by the WTO in respect to Boeing,” he stated.

US tariffs on $7.5 billion of EU merchandise after a parallel WTO case towards Airbus have been in place for over a 12 months.

The European Union says the principle goal of its personal measures is to steer the United States to barter an answer, arguing that the chief beneficiaries of the 16-year-old dispute are opponents, similar to China’s COMAC.

Dombrovskis stated the EU tariffs would mirror these set by the United States within the Airbus case, similar to 15 per cent for plane and 25 per cent for agricultural and industrial merchandise.

However, US Trade Representative Robert Lighthizer final month warned any EU measures would “force a US response”, whereas Donald Trump, who stays US president till January 20, threatened to “strike back harder”.

Washington may, for instance, select to hike its tariffs on EU cheese, olives and whisky to 100 per cent. It argues there isn’t a authorized foundation for EU measures as a result of underlying subsidies to Boeing have been repealed.

‘Great expectations’ for Biden

The dispute and EU complaints over US tariffs on EU metal and aluminium look set to switch to the subsequent president’s desk.

Dombrovskis repeated an EU provide that the bloc would droop its measures if the United States did the identical, however stated Washington had thus far not agreed to take action.

“We are ready to withdraw or suspend our tariffs any time, when the US is ready to do so, whether under the current or the next administration,” he stated.

German Economy Minister Peter Altmaier advised the identical information convention that many EU international locations noticed Biden’s election victory as an opportunity for an enchancment.

“We will try to get a new start in trade policy between the United States and all member states,” stated Altmaier, whose nation holds the rotating EU presidency. He added Europe’s aim was to seek out widespread floor with the long run Biden administration after which cut back total tariffs as a lot as doable.

Trump, with whom Europe has had strained relations, has not conceded and is making authorized challenges to the result of the November three election.

“There are great expectations and the hope that the American presidential elections will lead to a return to multilateral engagement in international trade and that it will be possible to overcome past conflicts,” Altmaier stated.

Dombrovskis stated there was a full listing of issues to do – from coordinating on the reform of world commerce guidelines to incorporating local weather change objectives into commerce.

He added the fee, which coordinates commerce coverage for the 27 EU nations, had made some casual contacts with Team Biden.

“So some first contacts have been made, among other things also to discuss trade issues,” he stated. “But at the same time, concerning ongoing issues…. we continue to work with the current administration.” — Reuters