The World Trade Organization (WTO) on September 30 will announce a decision on the dispute between the United States and the European Union, the consideration of which has been delayed for 15 years. If Washington wins the case, it could legally impose duties on European goods amounting to billions of dollars, CNBC writes.
The U.S. is demanding compensation for what they see as unfair subsidies that European authorities have provided to its Airbus aircraft manufacturer for years. The U.S. has said it wants to impose 100 percent tariffs on European imports of 11.2 percent. billion dollars. However, government sources later said that if they won, the restrictive measures would affect a smaller amount, about 7.5 billion. The list of items that may be subject to restrictions is already known. It will be chosen after the WTO announces its decision.
Earlier this month, several sources said the WTO was ready to support Washington in the trade dispute. Since then, Airbus shares have plummeted.
Meanwhile, the EU authorities are also pursuing a case in the WTO against the United States, which demands to recognize illegal preferences granted by Boeing. According to preliminary estimates, it will take about nine months to complete. The EU has also compiled a list of American goods, which in case of victory will be imposed duties.
According to experts, the new restrictive measures can lead to the beginning of a full-fledged trade war between the United States and the European Union. Currently, the United States has duties on European steel and aluminum, and in the EU – on American goods amounting to 2.8 billion dollars. In November, the U.S. will consider imposing duties on the European automotive industry. The EU authorities have already promised that they will not leave these actions unanswered.
A trade war with Europe could prove far more dangerous for the United States than a conflict with China. It will have a direct impact on the power of the United States in the world and, as Johns Hopkins University (USA) professor Eric Jones noted, can negate all preferences that American business has received since World War II.