ANNOUNCEMENT 09 Nov 2020

In November 2020, the European Union imposed countermeasures against the United States in relation to the Boeing subsidy dispute.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Official Journal of the European Union, Commission Implementing Regulation ((EU) 2020/1646 of 7 November 2020, published on 9 November 2020: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32020R1646&from=EN
WTO, DS316: European Communities and Certain member States — Measures Affecting Trade in Large Civil Aircraft: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds316_e.htm
WTO, DS353: United States — Measures Affecting Trade in Large Civil Aircraft — Second Complaint: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds353_e.htm

Inception date: 10 Nov 2020 | Removal date: open ended

Import tariff

On 9 November 2020, the European Commission issued Regulation (EU) 2020/1646 suspending concessions under the GATT 1994- and imposing additional duties on a number of goods from the United States. The rate of additional duty on imports of certain aircraft is 15%. The rate of additional duty on all other products (listed in Annex II) is 25%. The duties are imposed to counter the United States' subsidies granted to the American company Boeing. 

The imposition of duties follows the issuance of a decision on 13 October 2020 by the appointed Arbitrator in DS353 WTO case United States — Measures Affecting Trade in Large Civil Aircraft — Second Complaint as well as the authorisation by the WTO Dispute Settlement Body to impose countermeasures amounting to USD 3,993,212,564 per annum on 23 October 2020.

The dispute DS353 had notably been paused since 2012 in tandem with the United States pausing their dispute case against the EU concerning subsidies to Airbus. However, on 28 June 2018, the United States requested the resumption of the WTO Abirator's work on dispute DS316 concerning Airbus subsidies, which in turn lead to the EU to request, on 5 June 2019, the resumption of the Arbitrator’s work in DS353 concerning Boeing subsidies. Notably, the United States imposed countermeasures against the EU following the conclusion of dispute DS316 in October 2019, see related state act.