On April 8, 2019, the Trump administration released a list (see Annex) of $11 billion of European goods threatened with tariffs because of the WTO decision finding that “harmful subsidies” support the aircraft manufacturer Airbus. This case had been in litigation at the WTO for 14 years. It began in 2004 when the United States first challenged European government support for Airbus. The EU then challenged U.S. federal and state support for Boeing. The WTO ruled that the EU and the four governments involved in Airbus failed to comply with an earlier ruling that they should withdraw contested subsidies. The US then asked for authorization to retaliate in the amount of $11 billion dollars. These proposed tariffs against the EU would be imposed in addition to those already in place for European products.

A380-003 Michael Rehfeldt

Unites States Trade Representative Robert Lighthizer said the U.S. issued the proposed $11 billion list in order to “respond immediately when the WTO issues its finding on the value of U.S. countermeasures. The USTR press release may be found here.

The annex of goods is part of an unpublished Federal Register Notice entitled, “Initiation of Investigation; Notice of Hearing and Request for Public Comments: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute”, which includes, among other things, aircraft and aircraft parts, as well as traditional European specialty products including certain cheeses and wines.

In addition to the tariff list, it includes the following schedule:

Event Due Date/Date
Submission of requests to appear at the public hearing and summary of testimony May 6, 2019
Section 301 Committee Public Hearing May 15, 2019
Submission of written comments, including post-hearing rebuttal comments May 28, 2019

 

A WTO arbitrator has not yet ruled on this case, therefore the amount of retaliation remains undetermined until later this summer at the earliest. The EU said proposing to place tariffs on $11 billion dollars’ worth of goods is excessive.

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Photo of Frances P. Hadfield Frances P. Hadfield

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving…

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving customs compliance, audits, customs enforcement, as well as import penalties.

Frances represents clients before the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, as well as in proceedings at the administrative level. She advises corporations on both substantive federal and state regulatory issues that involve U.S. Customs and Border Protection, the Federal Trade Commission, Food and Drug Administration, and U.S. Fish & Wildlife in matters pertaining to product admissibility, audits, classification, import restrictions, investigations, marking, licenses, origin, penalties, and tariff preference programs.

Photo of Edward Goetz Edward Goetz

Edward Goetz is the Director for International Trade Services in Crowell & Moring’s Washington, D.C. office. Edward leads the firm’s international trade analysts providing practice support to the International Trade Group in the areas of customs regulations, trade remedies, trade policy, export control…

Edward Goetz is the Director for International Trade Services in Crowell & Moring’s Washington, D.C. office. Edward leads the firm’s international trade analysts providing practice support to the International Trade Group in the areas of customs regulations, trade remedies, trade policy, export control, economic sanctions, anti-money laundering (AML), anti-corruption/anti-bribery, and antiboycott. He has extensive government experience providing information and interpretive guidance on the International Traffic in Arms Regulations (ITAR) concerning the export of defense articles, defense services, and related technical data. He also assists attorneys with matters involving the Export Administration Regulations (EAR), economic sanctions, AML, anti-corruption/anti-bribery, and trade remedies.