Cecilia Malmstrom
The European Union has been trying to get the US to call off trade sanctions and come to an agreement on aircraft subsidies, but Washington has showed no signs of being open to talk, according to EU trade chief Cecilia Malmström.
The US request to impose tariffs up to 100% on European goods has now been approved by the World Trade Organization (WTO), the latest in a 15-year spat over subsidies for European planemaker Airbus and its American rival Boeing.
The Geneva-based WTO is due to announce the full scope of the sanctions in the week beginning September 30th. It is expected that it will also clear the EU to take action against US imports early next year.
“Our view is that we have enough tariffs in the world as it is... The U.S. president likes to make deals so we have offered to try to make a deal to find a negotiated solution,” EU Trade Commissioner Malmström told a press conference.
In July, the EU presented a proposal for the two parties to discuss issues including tax subsidies, repayable launch investment and aid for programme development.
“So far, unfortunately, the U.S. has not said that they are willing to negotiate, at least not until they have imposed their tariffs, which they are likely to do quite soon,” Malmström said.
The combined impact on bilateral trade could reach over $10-billion (€9.08-billion).
The list of European goods initially drawn up by the US is worth around €25-billion (€22.7-billion) and includes agri-food products, industrial products and aircraft and spare parts.
Ms Malmström also said that any agreement reached between the US and EU could also serve as a template for others to follow later, to create a level playing field.
“We also know other big players in the world, such as Russia and China but also others, are also subsidising their civil aircraft industry,” she said.
The EU has made a $20-billion list of imports from the US, including chemicals, foodstuffs and aircraft in preparation for a decision by the WTO, expected early next year.
Malmström said that she hoped the EU would not have to use it.
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