Thursday, August 13, 2020

USTR Modifies $7.5 Billion WTO Award Implementation Relating to Illegal Airbus Subsidies

On August 12, 2020, the United States Trade Representative issued a modification to the list of products subject to WTO-authorized additional duties in the United States' successful WTO challenge to subsidies for large civil aircraft provided by the European Union, France, Germany, Spain, and the United Kingdom. USTR is removing from the tariff list certain products from Greece and the United Kingdom and adding an equivalent amount of trade from France and Germany. The changes are modest; the amount of products subject to countermeasures will remain unchanged at $7.5 billion and the tariff rates will remain unchanged at 15% for aircraft and 25% for all other products.

"The EU and member states have not taken the actions necessary to come into compliance with WTO decisions," Ambassador Robert Lighthizer stated. "The United States, however, is committed to obtaining a long-term resolution to this dispute. Accordingly, the United States will begin a new process with the EU in an effort to reach an agreement that will remedy the conduct that harmed the U.S. aviation industry and workers and will ensure a level playing field for U.S. companies."

The modifications announced today will take effect on Sept. 1, 2020.

Currently textile products of the United Kingdom described below are subject to additional import duties of 25 percent ad valorem, there is no change to this list:

HTSSubheading Product Description
6110.11.00Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of wool
6110.12.10Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of Kashmir goats, wholly of cashmere
6110.20.20Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, nesoi*
6110.30.30Sweaters, pullovers and similar articles, knitted or crocheted, of man-made fibers, nesoi
6202.99.15Recreational performance outwear, women's/girls' anoraks, wind-breakers & similar articles, not knitted or crocheted, of other textile materials (not wool, cotton or MMF), containing <70 percent by weight of silk
6202.99.80Women's/girls' anoraks, wind-breakers & similar articles, not knitted or crocheted, of other texile materials (not wool, cotton or MMF), containing <70% by weight of silk,
6203.11.60Men's or boys' suits of wool, not knitted or crocheted, nesoi, of wool yarn with average fiber diameter of 18.5 micron or less
6203.11.90Men's or boys' suits of wool or fine animal hair, not knitted or crocheted, nesoi
6203.19.30Men's or boys' suits, of artificial fibers, nesoi, not knitted or crocheted
6203.19.90Men's or boys' suits, of textile mats(except wool, cotton or MMF), containing under 70 percent by weight of silk or silk waste, not knit or crocheted
6208.21.00Women's or girls' nightdresses and pajamas, not knitted or crocheted, of cotton
6211.12.40Women's or girls' swimwear, of textile materials(except MMF), containing 70% or more by weight of silk or silk waste, not knit or crocheted
6211.12.80Women's or girls' swimwear, of textile materials(except MMF), containing under 70% by weight of silk or silk waste, not knit or crocheted
6301.30.00Blankets (other than electric blankets) and traveling rugs, of cotton
6301.90.00Blankets and traveling rugs, nesoi
6302.21.50Bed linen, not knit or crocheted, printed, of cotton, cont any embroidery, lace, braid, edging, trimming, piping or applique work, n/napped
6302.21.90Bed linen, not knit or croc, printed, of cotton, not cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped

* NESOI means Not Elsewhere Specified or Included.

BACKGROUND
In October 2019, the WTO authorized the United States to take $7.5 billion in countermeasures following the largest victory in WTO history in the long-running dispute against the EU, France, Germany, Spain, and the United Kingdom regarding their illegal subsidies for the Airbus consortium. Following a notice and comment process, on October 9, 2019, the United States imposed additional tariffs of up to 25 percent on products of current and former EU member states with a trade value of approximately $7.5 billion. The section 301 statute provides for periodic review and modification of the tariff action. A prior revision was made in February 2020.

The details of the modification are set out in a Notice that will be published in the Federal Register.

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