Without waiting for the arrival of US President-elect Joe Biden, Brussels decided on Monday November 9 to implement customs sanctions against the United States in the dispute between Airbus and Boeing.

The European Union (EU) announced the establishment as of Tuesday of "tariffs on 4 billion dollars of American exports", in a press release.

These sanctions were authorized in October by the World Trade Organization (WTO).

Affected products include all models of Boeing aircraft (taxed at 15%).

But above all American agricultural products (tobacco, sweet potatoes, wheat, vegetable oils, fruits and juices ...) or agrifood products (strong alcohol, chocolate ...) as well as manufactured goods (tractors, excavators, casino equipment, parts bike ...) taxed at 25%, according to an official list.

Washington "disappointed"

These sanctions "mirror American measures. We do not want the conflict to escalate," said European Commissioner for the Economy, Valdis Dombrovskis after a videoconference of European trade ministers.

Washington said it was "disappointed" by the European decision, which "shows that the EU only cares about WTO rules when it suits it," blasted Robert Lighthizer, the trade representative, in a statement .

However, the EU and the United States are currently negotiating behind the scenes to try to resolve the long standoff between them over Boeing and Airbus, an American source told AFP.

The United States has already imposed punitive tariffs on European imports such as wine, cheese and olive oil (up to 25%) for more than a year, as well as taxes of 15%. % on Airbus aircraft.

Washington had been authorized by the WTO to do so, up to 7.5 billion dollars.

A conflict dating back more than 15 years

The European aircraft manufacturer Airbus and its American competitor Boeing, and through them the EU and the United States, have been clashing since October 2004 before the WTO, arbiter of world trade, over the public aid paid to the two groups, judged illegal on both sides.

The European countries had hoped to be able to avoid imposing in turn customs taxes on the United States, by trying to negotiate a global agreement on aid to aeronautics and the reciprocal abandonment of sanctions.

"Unfortunately, despite our best efforts, due to the lack of progress on the US side, the EU will exercise its rights," said Valdis Dombrovskis.

But he also reached out.

"We call on the United States to accept that both sides abandon their existing countermeasures so that we can move on. Removing the taxes would be a win-win," the EU commissioner said.

"Restore peaceful relationships"

Behind the scenes, member states had expressed doubts about the timing of European sanctions, as US President-elect Joe Biden is due to replace Donald Trump in January.

This was particularly the case for Germany, an exporting power, which holds the rotating presidency of the EU.

"We would have been very happy if a friendly solution had been found before the US election and we remain ready to initiate a negotiated solution at any time," German Economy Minister Peter Altmaier said on Monday.

"There are great expectations after Joe Biden's election victory and hope that the United States will return to a multilateral approach, including in trade," he said.

In France, the federation of wine and spirits exporters (FEVS) expressed Monday evening its "incomprehension" in the face of the announcement of immediate European taxes, fearing further American retaliatory measures.

Paris pleaded for an attitude of firmness, a necessary condition to promote a dialogue with Washington on an equal footing.

"The transatlantic trade relationship is essential for our economy, and we wish (...) to re-establish balanced and peaceful trade relations between the European Union and the United States", declared the French Minister of the Economy, Bruno Le Mayor, and the Minister Delegate in charge of Foreign Trade, Franck Riester, in a joint press release.

Airbus also welcomed the Brussels decision but added "support the EU's commitment to find a negotiated settlement to this long dispute in order to avoid lose-lose taxes," reacted the European aircraft manufacturer.

With AFP

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