CCTV news client April 15 news, EU sources on the 15th revealed that the EU temporarily plans to agree to official trade negotiations with the United States starting this Thursday, hoping to ease tensions with the United States.
Various signs indicate that a new round of trade friction between the United States and Europe "harms each other" and mutual bidding is about to begin.
According to a number of reports, EU diplomats spoke anonymously on the 12th, and the European Commission (hereinafter referred to as the "European Commission") is seeking to impose punitive tariffs on US exports worth US$12 billion in retaliation for the US. Can comply with the preliminary ruling of the World Trade Organization (WTO) to stop providing subsidies to Boeing.
It is reported that the European Commission actually drafted a tariff counter-measure list worth 20 billion euros. EU diplomats explained that considering the list to be circulated to EU member states and commenting, a list of 20 billion euros could be set aside to reduce the space during the consultation period.
The European Commission made this move because of a counterattack against the US’s previous similar actions: On April 8, the US Trade Representative Office (USTR) published a preliminary tariff retaliation list worth $11 billion, pointing out that It is the US-calculated amount of damage to the United States caused by the EU's subsidies to Airbus.
At present, both the United States and Europe have to wait for the WTO to arbitrate on the final counter-measure, and the outcome of the WTO's arbitration against the EU may not wait until March 2020. "You can say that the European Commission is preparing a bit early and is provoked by the United States," said an EU diplomat.
EU is expected to announce $12 billion tariff list next Wednesday
According to the aforementioned EU diplomat, on April 15 (next Monday), the EU will hold a meeting for this tariff list, and it is expected that the tariff list with a total amount of US$12 billion will be announced on April 17.
According to the description of EU diplomats, the EU has carefully selected products with high sensitivity in European and American trade, including: video game consoles, fitness equipment, casino gaming tables, tobacco, vodka, orange juice and a range of foods. It includes chocolate, ketchup and frozen lobster.
In fact, on April 9, the EU has already stated its position and prepared for retaliation.
On April 11th, at the WTO dispute settlement mechanism meeting, the United States and Europe also had a big argument about the subsidies of Airbus and Boeing. According to the speeches and after the meeting of the first financial journalists from authoritative sources. The records show that the atmosphere on the scene is very tense, and the United States and Europe are mutually invulnerable, accusing the other party of being a party that truly abuses subsidies and does not repent.
The First Financial Journal reporter also learned from authoritative sources that the United States’ request at the meeting to authorize the WTO to implement annual counter-measures against the EU is more than $200 million, or $11.2 billion, compared to the amount previously announced by USTR.
However, the EU side pointed out on April 9 that the $11 billion quota was not authorized by the WTO, but was based on internal estimates of the United States and was seriously exaggerated.
It is worth noting that on the day of the EU diplomat’s briefing on the EU’s $12 billion penalty tariff list in Brussels (April 12), attending 2019 International in Washington, USAMonetary FundThe French Finance Minister Lemaire (IMF) and the World Bank’s spring meeting also warned that Europe will respond to any US tariffs against Airbus.
Lemer said, "If we are subjected to unreasonable and unreasonable sanctions from the United States, Europe will be prepared to respond in a united manner."
“All of this will have a negative impact on economic growth and is not good for the prosperity of the United States and Europe.” He warned, “We must avoid this.”
However, Lemaire also pointed out that "according to the final result of the WTO, it seems to me that the smart approach is to reach a friendly agreement between the United States and Europe on the final settlement of the Airbus-Boeing case."
WTO began to ruling tariff counter-measures in the second half of the year
In the past 14 years, the issue of subsidies between Airline and Boeing in the United States and Europe has been discussed in the WTO. The cases in the two sides are the EU v. US subsidy Boeing case (hereinafter referred to as "DS353" case) and the US v. EU subsidy Airbus case ( Hereinafter referred to as "DS316 case").
At present, the WTO has made a final ruling in both cases: in the DS316 case, the WTO determined that the EU provided approximately 18 billion US dollars in subsidy financing to Airbus; in the DS353 case, the WTO determined that the US side would be in the form of Washington State tax relief. Provided illegal subsidies to Boeing, with a quota of about $5 billion, and has not been cancelled.
At the WTO dispute settlement mechanism meeting on April 11, the US representative said that after 14 years of mutual protest subsidy war, the final judgment proved the position of the United States, that is, the large amount of subsidies provided by the EU to Airbus. More than the US subsidy for Boeing.
The US also pointed out that these subsidies of Airbus continue to cause serious damage to US interests and cause a significant reduction in sales of Boeing 787 and 747 aircraft.
In retaliation, the US decided to impose a tariff of 11.2 billion U.S. dollars per year on the EU and set the scope of retaliation as two groups. A group of four manufacturing countries for Airbus - France, Germany, Spain and the United Kingdom, and a group for a wide range of EU 28 countries, the overall list of products involved in helicopters, cargo aircraft, and food and agricultural products, etc. .
According to the relevant provisions of the WTO, both the United States and Europe can refer to the relevant amount to retaliate against each other. However, both sides need to wait for the WTO to arbitrate against the counter-claims.
It is reported that the WTO will first make an arbitration result for the amount of retaliation that the US can take in June-July this summer, and then initially arbitrate the EU quota in March 2020, before the EU applied for it in 2012. The amount is 12 billion euros.
It must be pointed out that on April 15th, the EU originally planned to hold a voting meeting officially authorizing the US-European “three zeros” (zero tariff, zero non-tariff barriers and zero subsidies) free trade negotiations, after news that although France There are reservations about this, but in the end, because the majority of the countries are in favor, the result will still be the opening of the free trade negotiations, and the current situation in which the United States and Europe mutually exchange billions of dollars in tariffs, for this US and Europe "three zeros." "The road to the opening of free trade negotiations has cast a heavy shadow. (Source: First Finance)
(Article source: CCTV)