Business News

WTO allows EU to increase tariffs of imports from the US 

4th November 2020


The latest WTO decision is final, cannot be appealed, and puts the final word on a standoff dating back to 2006.

In a recent ruling, the World Trade Organization (WTO) allowed the EU to raise tariffs up to $4 billion worth of imports from the United States as a rebalancing measure for illegal subsidies by the US to American aircraft maker, Boeing.

The ruling comes a year after another ruling authorised the United States to slap penalties on EU goods worth up to $7.5 billion (€6,4 billion) — including Gouda cheese, single-malt whiskey and French wine — over the bloc's support for Boeing rival Airbus.

In the past in trade disputes, the EU has sought to roughly match products affected by previous American sanctions — such as by hitting U.S. distillers if French wines were targeted. The bloc could aim for areas where Boeing planes or parts are made.

The latest WTO decision is final, cannot be appealed, and puts the final word on a standoff dating back to 2006. It is just one part of a string of long-running disputes between the two plane-making giants at the WTO. And it sets the stage for what could become intense negotiation between the EU and U.S. to end what could become tit-for-tat transatlantic sanctions.

Maltese enterprises importing from the United States can view the list of products that will be subject to additional tariffs here.


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WTO allows EU to increase tariffs of imports from the US