CECE met the European Commission to discuss removal of tariffs in the Airbus/Boeing Dispute

DG Trade confirmed that the purpose of the EU tariffs is to induce compliance with the WTO rules and level the playing field after the US imposed tariffs in October 2019. With tariffs in place, the US and the EU are encouraged to find a negotiated settlement.  

DG Trade confirmed that the subsidies which were the origin of the dispute have been lifted both in the US and in the EU. In addition, the EU has started negotiations with the current US administration on the future legal discipline on large aircraft manufacturing, with the aim of having the tariffs lifted in the next weeks, even if only temporarily.  

When it comes to the selection of products on which tariffs were imposed, DG Trade explained that they adopted a calibrated approach to reach $4 billion worth of tariffs on imports from the U.S. Therefore, they came to the final list of products only in October 2020 when the WTO determined the amount of $4 billion. 

They argued that they put tariffs on the products that will motivate the US to come to the negotiating table following a political calculation based on the influence of the political representatives and the constituencies they represent.   

When CECE pointed out that the EU tariffs are on different products compared to the US list, DG Trade argued that the mirroring is only on the tariff levels (15% on aircraft products and 25% on industrial goods) and not on the targeted products. 

CECE will continue joining forces with AEM to reiterate on both sides of the Atlantic the case against tariffs.