Question

October 2019: After 15 years of disputes, the U.S. and E.U. are actually coming to some conclusions.

September 2020: Still PROCESSING ... still 15% tariff on Airbus planes and 25% on wine and other goods from the EU. What about spirits from the EU?

Only a 5 point assignment due on Friday, September 25th before 11:59 pm.

Discuss the tit-for-tat transatlantic trade war. A brief summary (a paragraph or so) and then YOUR reaction (again a paragraph or so). 2 points each, with 1 point for submitting the assignment!

Answer 1

Solution:

The government of U.S. on Wednesday said that it would maintain 15% tariffs on Airbus aircraft and 25% tariffs on other European goods despite moves by the EU to resolve a long standing dispute over subsidies of aircraft. United States Trade Representative Robert Lighthizer said that the European Union had not taken actions necessary to come into compliance with World Trade Organization decisions, and Washington would initiate a new process of try to reach a long-term solution

Airbus on Wednesday said that it is regretted a U.S. decision to keep in place 15% tariffs on Airbus aircraft despite EU actions to comply with World Trade Organization rulings and said it expected Brussels to protect European interests

Airbus regrets that, the despite Europe’s recent actions to achieve a full compliance, United States Trade Representative has decided to maintain tariffs on Airbus aircraft especially at a time when aviation and other sectors are going through an unprecedented crisis. Airbus spokesman Clay McConnell said in a statement that, Airbus trusts that Europe will respond appropriately to defend its interests and the interests of all the European companies and sectors which includs Airbus, targeted by these tariffs

The Lighthizer’s office said it would modify their list of $7.5 billion of affected European products to remove certain goods from Greece and Britain adding an equivalent amount of goods from Germany and France.

Last month, Airbus said it would increase loan repayments to France and Spain in a final bid to reverse the U.S. tariffs and jog the U.S. into settling a 16-year-old dispute over billions of dollars of subsidies of aircraft.

Trade groups are bracing for an escalation of the row in the autumn when the European Union is expected to win WTO approval to hit back with its own tariffs over the Boeing subsidies

Boeing said that, it hoped the European Union and Airbus will engage promptly in meaningful negotiations with the United States to address the full scope of their noncompliance and finally bring this case to an end.

United States Trade Representative in October 2019 imposed 25% tariffs on some European Union food, wine and spirits in retaliation for European Union subsidies are on large aircraft. The tariffs hit French wine, Italian cheese and single-malt Scotch whisky as well as cookies, yogurt, salami, olives from France, European Union produced pork sausage and German coffee

United States Trade Representative initially imposed 10% tariffs on Airbus aircraft but hiked that to 15% in March
Despite a push by members of the Congress United States Trade Representatives declined to drop 25% tariffs on European Union food, wine and spirits but it also did not add tariffs to vodka, gin and beer as it had threatened.

The Wine & Spirits Wholesalers of the America criticized the decision, which did not lift the tariffs on wine, and said that it would maintaining the pressure on a sector desperately in need of the relief