The Government has rejected the decision of the United States Administration to maintain the additional tariffs imposed on exports of Spanish and European products as a result of the Airbus panel in the World Trade Organization (WTO) , and which affect, above all, the food industry.

Specifically, the Ministries of Industry, Trade and Tourism and of Agriculture, Fisheries and Food have issued a joint statement in which they trust that an agreement will be reached that will reverse the current dynamics in trade relations between both countries, with mutual economic interests. , and that negotiations be "urgently" resumed to find a solution to this conflict.

The Spanish Executive has reiterated on numerous occasions its "frontal opposition" to these tariffs and has "always" defended the search for a negotiated solution.

The Government recalled that as a sign of its willingness to reach an agreement, on July 23 it agreed with Airbus to modify the terms of the launch aid granted to the A350, and place them on the market. After this modification, the requirements demanded by the WTO are fulfilled, for which it considers that the withdrawal of countermeasures by the US on products exported from the European Union is justified.

The Minister of Industry, Trade and Tourism, Reyes Maroto, considers that, at present, the EU and the member states of the Consortium (Spain, France and Germany) fully comply with the rules of the WTO and with the requirements of the panel in the In the Airbus case, he believes that the United States should withdraw retaliatory measures and seek a solution to the conflict.

"The European Union and Spain are firmly committed to establishing negotiations and their efforts to reach a solution to the long-standing dispute over trade in large civil aircraft are evident," said Maroto.

For his part, the Minister of Agriculture, Fisheries and Food, Luis Planas , has stressed that "the agri-food sector has been immersed in a commercial conflict unrelated to its activity" and that "it is a strategic error to include food in retaliation commercial".

The Minister of Agriculture has emphasized that the global agri-food sector must develop in markets that ensure "stability and limit the uncertainty" derived from trade tensions, while highlighting the importance of multilateralism in trade agreements and a rules-based international trade.

The United States is the second destination country for exports of Spanish food and beverages outside the European Union, and to which Spain exported products worth 1,838 million euros in 2019.

The EU and Spain consider that, out of mutual interest and especially in the current economic circumstances after the coronavirus crisis, the tariffs that unnecessarily harm the Spanish and EU economies should be suspended, and negotiations to resolve the conflict should be resumed "urgently" .

The Government has recalled that the European Commission has made specific proposals to reach a negotiated result to this dispute. Spain has just modified its contracts with Airbus for the A350 and remains open to working with the United States to agree on a "fair and balanced" result in terms of disciplines for subsidies in the civil aircraft construction sector.

For its part, the WTO will soon issue its arbitration decision in the parallel case of the EU against the United States on illegal subsidies to Boeing.

The EU hopes that the negotiations will allow it not to have to exercise its own sanction rights, when the WTO establishes the level of authorized countermeasures in the case of Boeing and that a consensual solution can be reached for mutual benefit that guarantees the development of the aeronautical sector of both parties.

Fear among the winemakers

The Spanish Wine Federation (FEV) has regretted the decision of the United States to maintain the additional tariffs on European and Spanish wine and demands that the Government resume the negotiation at the highest level, as reported in a statement.

"With this decision, wine continues to be the victim of an alien conflict that has already seriously harmed Spanish wineries in a priority market such as the United States and at a particularly delicate time for the sector due to the recession caused by the coronavirus crisis throughout the world and the restrictions on the hospitality industry ", he stressed.

In this way, the FEV urges the Executive of Pedro Sánchez to resume negotiations with the United States at the highest level to seek a solution to a problem that has already led to an "important loss" of commercial margin for many wineries at the cost of to be able to stay in a "strategic market" in which they have been investing and developing their export activity for years and which, if this situation continues over time, could lead to their definitive expulsion from the market.

The sector recalled that since October, wines, except sparkling wines, with an alcohol content of less than or equal to 14% by volume and in containers of two liters or less from Spain, France, Germany and the United Kingdom have been taxed with an additional 25% duty.

The FEV reiterates that the decision to maintain tariffs, at least for the next six months, only aggravates the crisis in the wine sector on both sides of the Atlantic. The United States is the second destination for Spanish wine exports in value and the first outside the EU, with almost 324 million euros and 22.3% of the total.

According to the latest data from the Spanish Wine Market Observatory (OEMV), the United States has notably reduced its imports of Spanish bottled wine in value since the introduction of tariffs, and especially in March (-34.2%), April (-22 , 8%) and May (-20.8%), coinciding with the coronavirus crisis.

According to the criteria of The Trust Project

Know more

  • Spain
  • U.S
  • Airbus
  • European Union
  • Boeing
  • Reyes Maroto
  • Luis Planas
  • France
  • European Comission
  • Germany
  • economy

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