The World Trade Organization (WTO) set to back a request of the United States to impose tariffs on European products worth of billions of dollars, potentially flashing a new trade war all over the Atlantic, several media reports suggest. Authorities from the WTO are going to meet in Geneva at 10:00 am local time on Monday to finalize a fifteen-year-old case took by the U.S. The United States seek out for recompense for what they say are unlawful subsidies approved to the plane manufacturer Airbus by the governments of Europe.
Airbus shares dipped rapidly earlier this month following reports that the WTO will move in the courtesy of the United States, granting Trump the authority to impose billions of dollars of tariffs in reward. Washington stated it needs to slap tariffs of over 100% on the exports of Europe to the U.S. with a yearly trade value of about $11.2 billion annually. Reuters reported on Thursday that the government of the United States wouldn’t get to that number, in spite, they will win the power to slap tariffs on European goods worth about $7.5 billion in a year.
The U.S. already made up an extensive list if the EU goods which it says it will select from, once the World Trade Organization finds a suitable amount. Apart from EU-built aircraft and parts, goods on the list included base metal parts, clothes, equipment to make jewelry, drink, food, and motorcycles.
European seeking for Boeing revenge from WTO
Europe has its own point of view in the case before the WTO, and it argues is that the United States plane manufacturer Boeing receives biased financial assistance from the federal government of the U.S. That ruling from Switzerland authorities, assessed to about nine months away. Christian Scherer, the Chief Commercial Officer (CCO) of Airbus told an international news website last week that the lawsuit unlikely to benefit either the company.
He said at the launch of the company’s annual commercial outlook that according to his views, the aerospace or ecosystems on either side of the Atlantic have everything to get by going at each other’s jugular.
The European Commission started a open consultation on its initial products list from the U.S. that it would aim to hit with tariffs on imports. That list represents around twenty billion dollars’ worth of the United States exports to Europe, also covered an extensive range of goods including chemicals, aircraft and food products like citrus food and frozen fish.