The US and the EU have been arguing about state aid for Boeing and Airbus for years. Now the European Union is introducing criminal charges – and does not want to wait for the new American president.
The EU will impose punitive tariffs on US imports because of illegal subsidies for aircraft manufacturer Boeing. This was announced by EU Vice President Valdis Dombrovskis on Monday during a video conference of EU trade ministers. The EU will therefore not wait to see if future US President Joe Biden initiates a change in US trade policy.
The World Trade Organization (WTO) now has a decision allowing the EU to impose criminal charges, Dombrovskis said. That’s what you are doing now.
EU still ready for negotiations
At the same time, Dombrovskis stressed that the EU is still ready for negotiations. If the US withdraws or suspends their fares because of the subsidies for the European aircraft manufacturer Airbus, the EU will do the same.
Independent brokers recently decided that the EU could impose criminal charges on US imports of nearly $ 4 billion (€ 3.4 billion) per year due to illegal subsidies for US aircraft manufacturer Boeing.
In a similar case, US arbitrators had already approved $ 7.5 billion punitive tariffs on EU products for illegal subsidies to Airbus. The US had already introduced special taxes on EU products that are still in place.
Immediately after the WTO decision in mid-October, the EU announced that it would first re-examine the possibilities for a negotiated solution with the administration of US President Donald Trump. However, this was clearly unsuccessful.