WTO authorizes U.S. to target EU goods with tariffs over Airbus
Updated 18:07, 14-Oct-2019
CGTN

The World Trade Organization (WTO) formally authorized the United States on Monday to impose tariffs on up to 7.5 billion U.S. dollars of imports of EU goods after a decision earlier this month by a WTO arbitrator over subsidies to planemaker Airbus.

The WTO's dispute settlement body, made up of representatives from its 164 members, cleared Washington to take countermeasures against the European Union and Airbus-producing countries Britain, France, Germany and Spain.

The authorization was a formality. It would only have been denied if all WTO members present voted against.

On October 2, the United States has won 7.5 billion U.S. dollars award in WTO in its dispute with the European Union over illegal subsidies to Airbus. The award of 7.5 billion annually is by far the largest award in WTO history—nearly twice the largest previous award.

French wine. /VCG Phto

French wine. /VCG Phto

After that, the U.S. Trade Representative's Office (USTR) released a list of hundreds of European products that will get new tariffs, including cookies, salami, butter and yogurt – but in many cases applied to only some EU countries, including German camera parts and British-made blankets. 

The list includes UK-made sweaters, pullovers, cashmere items and wool clothing, as well as olives from France, Germany and Spain, EU-produced pork sausage and other pork products other than ham, and German coffee. The new tariffs are to take effect as early as October 18. 

Read more: U.S. hits Scotch whisky, Italian cheese, French wine with 25% tariffs

The EU is not allowed to retaliate against WTO-authorized countermeasures.

European Council President Donald Tusk speaks during a news conference on the margins of the G7 summit in Biarritz, France, August 24, 2019. /Reuters Photo

European Council President Donald Tusk speaks during a news conference on the margins of the G7 summit in Biarritz, France, August 24, 2019. /Reuters Photo

EU President Donald Tusk said earlier in August that the bloc would retaliate against the U.S. if President Donald Trump goes ahead with his threats of imposing tariffs on French wine, warning that Trump's escalating trade skirmishes with China and Europe could force economies around the world into recession. 

Read more:Tusk says EU would respond to U.S. tariffs on French wine, warning on trade war risks

In May 2011, the Appellate Body of the WTO confirmed that the EU and four of its member states (Germany, France, the UK, and Spain) conferred more than 18 billion U.S. dollars in subsidized financing to Airbus and had caused Boeing to lose sales of more than 300 aircraft and significant market share throughout the world, according to USTR. 

(With input from Reuters)