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EU will impose $4 billion worth of tariffs in retaliation for illegal subsidies to Boeing

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Today (9 November) the European Union announced that it would impose $4 billion worth of tariffs on imports from the US as a countermeasure for illegal subsidies provided to the American aircraft maker Boeing.

Both Executive Vice President Valdis Dombrovskis and his predecessor Commissioner Phil Hogan reached out to the US to resolve the dispute before the recent US elections without success.

The World Trade Organization (WTO) decision (13 October) allowing the EU to take action was followed by further diplomatic efforts on the EU side. Executive Vice President Valdis Dombrovskis, said at the time: “I would much prefer not to do so - additional duties are not in the economic interest of either side, particularly as we strive to recover from the COVID-19 recession. I have been engaging with my American counterpart, Ambassador Lighthizer, and it is my hope that the US will now drop the tariffs imposed on EU exports last year. If it does not happen, we will be forced to exercise our rights and impose similar tariffs. While we are fully prepared for this possibility, we will do so reluctantly.”

German Federal Minister for Economic Affairs and Energy, Peter Altameier, representing the Germany Presidency, pointed to the US tariffs, which have been in place since last year, amounting to tariffs of $7.5 billion on EU exports. He said that they were ready at any time to speak to the outgoing or incoming administration to suspend the new tariffs. 

The dispute has been one of the longest-running in the history of the WTO.

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