The United States and the European Union (EU) have had a long-running transatlantic dispute over aircraft subsidies to Airbus going back to 2004. The dispute found its way to a World Trade Organization (WTO) Dispute Settlement Panel. On April 12, 2019, the USTR announced in the Federal Register (FR) that it had determined that the EU and certain member States have denied U.S. rights under the WTO Agreement and have failed to implement WTO Dispute Settlement Body recommendations. As a result, the USTR was considering imposing 301 duties on hundreds of products imported from the EU.
In May of this year, the WTO issued an appellate report stating the EU must end certain ongoing financial support for Airbus’ biggest passenger planes. The U.S. then drafted proposed tariff lists pending the decision of a WTO arbitrator, who could authorize the U.S. to take countermeasures if the EU did not comply with the WTO ruling against the subsidies it provided to Airbus.
The EU quickly responded with their own preliminary list of U.S. products exported to the EU that will be subject to tariffs up to 100% if the U.S. imposes duties on EU goods. The proposed list of $20 billion in imports from the U.S. covers a variety of products, including food-grade oils, frozen fish, handbags and wallets, luggage, farm tractors, playing cards, wines and spirits.
Yesterday, the WTO arbitrator gave the U.S. a green light to impose duties on up to $7.5 billion worth of EU goods, marking the largest such ruling in the WTO’s history and ratcheting up tensions between the U.S. and the European Union. The USTR has stated that the tariffs will not end until the subsidies stop.
I am attaching the final list of EU products that will be subject to additional duties effective October 18, 2019. A Federal Register is expected to follow shortly. We do not have more information at this time regarding the Oct. 18th date. However, importers should be prepared for the date to mean goods entered on or after Oct. 18, 2019.
You will note that there are various lists within the attachment. Some lists of products are from all EU members; others are from selected countries. You will also note that some products will be subject to 10%, while others will be subject to 25% additional duties.
EU Section 301 Final Product List >