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The US Has Maintained Duties On Goods From The EU Of $7.5 Billion

The US Has Maintained Duties On Goods From The EU Of $7.5 Billion

The US has maintained duties on goods from the European Union for $7.5 billion, the country's trade representative office reported.

This decision was made in connection with subsidizing the production of civil aircraft in the EU, in particular, in France, Germany, and Spain, as well as in the UK, the Ministry said.

"The EU and the Member States have not taken the measures necessary to implement the WTO decisions," said us trade representative Robert Lighthizer. At the same time, Lighthizer noted that the United States intends to continue searching for "a long-term solution to this dispute."

Washington has maintained a 15 percent duty on aircraft and 25 percent on other goods. At the same time, the US excluded some products from the UK and Greece from the list, including a comparable volume of products from France and Germany. Changes to the list will take effect on September 1.

The world trade organization (WTO) in October 2019 officially allowed Washington to impose duties on European goods totaling $7.5 billion in response to the EU's subsidy of the aircraft manufacturer Airbus SE.

In July this year, Airbus reached agreements with the governments of France and Spain to amend the terms of the A350 production support programs to finally settle a long-standing dispute in the WTO.

EU trade Commissioner Phil Hogan has since said that if the US maintains "unjustifiable duties," the EU will "exercise its right to retaliate."

Today, as required by U.S. law, the United States Trade Representative is issuing a modification to the list of products subject to WTO-authorized additional duties in the United States’ successful WTO challenge to subsidies for large civil aircraft provided by the European Union, France, Germany, Spain, and the United Kingdom. USTR is removing from the tariff list certain products from Greece and the United Kingdom and adding an equivalent amount of trade from France and Germany. The changes are modest; the amount of products subject to countermeasures will remain unchanged at $7.5 billion and the tariff rates will remain unchanged at 15% for aircraft and 25% for all other products.