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EU sectors hit by aircraft disputes call for de-escalation
16 Oct '20
3 min read
Pic: EURATEX
Following the publication of the World Trade Organisation (WTO) report on the Boeing dispute earlier this week, 13 European associations representing sectors threatened or hit by US tariffs as part of the Airbus dispute have urgently called on the European Union (EU) and the United States to de-escalate the disputes, work on a negotiated solution and stop targeting sectors not directly related to the disputed aircraft subsidies.
As a goodwill gesture, the associations called on the United States to suspend additional tariffs imposed on European products as part of the Airbus trade dispute and on the EU to refrain from imposing additional tariffs on US products, while negotiations are under way.
The trade associations in the coalition include the European Apparel and Textile Confederation (EURATEX); ACEM, the European Association of Motorcycle Manufacturers; CAOBISCO, the Association of the Chocolate, Biscuits and Confectionery Industries in Europe; Cerame-Unie, which represents the European ceramic industry; and EPTA, represents European power tool manufacturers.
“All our sectors have been threatened or already hit by punitive tariffs for months, as part of a trade dispute over which we have no control and which is not related to us. In light of the economic slowdown caused by the COVID-19 crisis, worsened by recent restrictions and localised lockdowns across Europe, we can no longer afford to foot the bill for such unrelated disputes”, said the coalition in a press release.
“While 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,” it said.
The coalition is concerned over the lack of progress on a negotiated settlement and the potential threat of rapid escalation, at the detriment of sectors already suffering due to the global pandemic.
“We hope that the risk of further escalation will be avoided and that the voice of reason and moderation will prevail, on both sides of the Atlantic. Both sides need to realise that they have nothing to gain in continuing to fuel the negative cycle. The EU & the US should instead build on the good will generated by the tariff reduction agreement concluded in August and speed up work on a negotiated solution”, concluded the coalition.
On August 12, the United States published an updated list of EU products that will face additional tariffs from September 1 in retaliation for aircraft subsidies. The Office of the US Trade Representative decided to maintain a 25 per cent tariff on non-aircraft products. Changes were effective on September 1.
On October 13, the WTO arbitrator issued its decision on the level of counter-measures the EU may request with respect to the United States in relation to the Boeing case.
As a goodwill gesture, the associations called on the United States to suspend additional tariffs imposed on European products as part of the Airbus trade dispute and on the EU to refrain from imposing additional tariffs on US products, while negotiations are under way.
The trade associations in the coalition include the European Apparel and Textile Confederation (EURATEX); ACEM, the European Association of Motorcycle Manufacturers; CAOBISCO, the Association of the Chocolate, Biscuits and Confectionery Industries in Europe; Cerame-Unie, which represents the European ceramic industry; and EPTA, represents European power tool manufacturers.
“All our sectors have been threatened or already hit by punitive tariffs for months, as part of a trade dispute over which we have no control and which is not related to us. In light of the economic slowdown caused by the COVID-19 crisis, worsened by recent restrictions and localised lockdowns across Europe, we can no longer afford to foot the bill for such unrelated disputes”, said the coalition in a press release.
“While 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,” it said.
The coalition is concerned over the lack of progress on a negotiated settlement and the potential threat of rapid escalation, at the detriment of sectors already suffering due to the global pandemic.
“We hope that the risk of further escalation will be avoided and that the voice of reason and moderation will prevail, on both sides of the Atlantic. Both sides need to realise that they have nothing to gain in continuing to fuel the negative cycle. The EU & the US should instead build on the good will generated by the tariff reduction agreement concluded in August and speed up work on a negotiated solution”, concluded the coalition.
On August 12, the United States published an updated list of EU products that will face additional tariffs from September 1 in retaliation for aircraft subsidies. The Office of the US Trade Representative decided to maintain a 25 per cent tariff on non-aircraft products. Changes were effective on September 1.
On October 13, the WTO arbitrator issued its decision on the level of counter-measures the EU may request with respect to the United States in relation to the Boeing case.
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