Second proposed tariff list released in EU aircraft case

The imposition of any tariffs depends on whether a WTO arbitrator determines the U.S. may take countermeasures.

   The Office of the U.S. Trade Representative is considering an additional proposed list of tariffs on products from the EU in connection with a dispute over aircraft subsidies considered at the World Trade Organization, USTR announced on Monday.
   USTR on April 12 published a preliminary list of EU products to be considered for inclusion on a final list of goods that would be subject to additional duties of up to 100%.
   Several public comments responding to that notice requested that USTR consider additional products not on the April 12 list for possible inclusion on a final list, the agency said.
   The additional list contains 89 tariff subheadings, valued at a total of $4 billion in estimated 2018 import value, USTR said. The first list encompasses an approximate trade value of $21 billion.
   The U.S. drafted both proposed tariff lists pending the decision of a WTO arbitrator, who could authorize the U.S. to take countermeasures.
   The WTO in May 2018 issued an appellate report stating the EU must end certain ongoing financial support for Airbus’ biggest passenger planes.
   “If the U.S. Trade Representative determines to take action in this investigation, a final list of products to be subject to additional duties may be drawn from both this and the April 12 lists,” USTR said.
   Through Aug. 5, USTR will accept public comments on the proposed supplemental list, particularly with respect to the specific products, the potential level of duty increase and whether increased duties could have an adverse effect on U.S. stakeholders, including small businesses and consumers.
   The interagency Section 301 Committee on Aug. 5 will hold a public hearing to obtain input on the proposed list at the U.S. International Trade Commission in Washington, D.C.
   The due date for submission of post-hearing rebuttal comments is Aug. 12.
   The additional list includes several dairy products, meats, grains and metal products.
   The initial list contains goods including agricultural products, apparel, ceramics, metals and kitchen goods.
   In the event the WTO arbitrator issues a decision before completion of the public comment process on the supplemental list, USTR may immediately impose increased duties on products on the initial list and “take further possible actions” regarding products on the supplemental list, USTR said in a press release.

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Brian Bradley

Based in Washington, D.C., Brian covers international trade policy for American Shipper and FreightWaves. In the past, he covered nuclear defense, environmental cleanup, crime, sports, and trade at various industry and local publications.