EU Airbus Tariffs: Next Steps

The next review of the WTO Airbus case that resulted in retaliatory tariffs on a long list of beverage alcohol products from the EU is scheduled to take place before July 4, 2020. As you will recall, the first carousel took place 120 days after the tariffs were applied (Feb 18, 2020), and then reviews follow every 180 days thereafter UNLESS the USTR determines that the party at fault has come into compliance or the affected industry (Boeing) decides it is not necessary to continue the action. Thus, the next potential update will occur on or about July 18, 2020. The USTR has published a notice as to the opening of submission of public comments during the next review and the USTR wants to utilize a portal to provide the input. We will provide further updates on the ability to input comments as more information becomes available. WSSA will be working with other industry associations to submit comments opposing additional tariffs and continues to work toward elimination of the retaliatory tariffs on beverage alcohol.

In the midst of this process, the U.S. and the U.K. have launched talks to develop a trade agreement, and the EU is also seeking a mini trade deal with the U.S. Furthermore, the WTO case involving Boeing may be over as the U.S. stated that they had eliminated the state tax break that violated global trade rules. The probable end of the Boeing dispute does not change the status of the Airbus case and Robert Lighthizer, United States Trade Representative has stated, “We will continue to press the EU to negotiate a resolution that respects the WTO’s findings” (quoted from techxplore.com, May 6 2020).

We will continue to provide updates on these topics as information becomes available. Please contact us with any questions or concerns.