EU Affected Sectors Urge EU and US to End Aircraft Trade Disputes  

BRUSSELS – 13 August 2020

Following Yesterday’s USTR announcement and in view of the forthcoming WTO report on the Boeing case, 14 EU associations representing affected sectors call on the EU and US to de-escalate the ongoing aircraft disputes and remove tariffs on targeted sectors not directly related to the aircraft case as a matter of urgency.

“We do not believe that using our sectors as leverage in disputes that are not connected to us is helping with the broader, unrelated issues”, said the coalition. “While we appreciate that trade tensions between US and EU are complex, with serious issues on both sides, punitive tariffs cause irreparable harm to companies of all sizes and weaken their entire supply chains, at a time when growth and job creation are most needed. They fuel a negative cycle, with a strong risk of further escalation, and generate no tangible benefits to the EU or the US”.

Today, affected sectors not party to the aircraft disputes have decided to speak with one voice in urging the European Commission and US Administration to put an end to the negative cycle and work on a negotiated solution without impacting the broader economy any further. This is critical at a time when undersigned sectors & their wider supply chains in both the EU and the US have already suffered significant economic damage as a result of the COVID-19 crisis and are trying their best to sustain what can only be described as a fragile economic recovery.

“We hope Airbus’ announcement from July 2020 and the legislation passed in Washington State in March 2020 regarding civil aviation subsidies will be seen by both sides as significant steps toward the elimination of tariffs and will encourage both the US & the EU to go back to the negotiating table”, concluded the coalition.

The joint release was issued by the following 14 trade associations: ACEM; AIJN; CAOBISCO; CEEV; CEO; Cerame-Unie; CLITRAVI; EDA; EPTA; EURATEX; FEC; Intergraf; PROFEL; spiritsEUROPE

Notes to editor:

Background information: On 12 August, the US published an updated list of EU products that will face additional tariffs from 1 September 2020, in retaliation for aircraft subsidies. USTR decided to maintain a 25% tariff on non-aircraft products. There are few changes compared with the current situation:

  • Certain categories of jam from France and Germany are now in the list.
  • Certain types of cheese from Greece and biscuits from the UK are no longer targeted.

Changes will be effective on 1 September 2020.

The USTR announcement is available here: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/august/ustr-modifies-75-billion-wto-award-implementation-relating-illegal-airbus-subsidies

The list of amendments and products impacted is available here: https://ustr.gov/sites/default/files/files/Press/Releases/FRN081220.pdf

 

spiritsEUROPE

spiritsEUROPE proudly represents one of Europe’s most valuable agri-food export sectors and, with it, the interests of 31 associations of spirits producers as well as 10 leading multinational companies. More information can be found here: https://spirits.eu/

Contact person: Pauline Bastidon, Director, Trade & Economic Affairs – bastidon@spirits.eu

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13.08.2020 EU Affected Sectors Urge EU and US to End Aircraft Trade Disputes