European Union sectors hit by aircraft disputes call for de-escalation

The US has offered to settle a long-running aircraft subsidy dispute with the EU and remove tariffs on wine whisky and other products if Airbus repays billions of dollars in aid to European governments sources told Reuters news agency [File Charles Pla

The US has offered to settle a long-running aircraft subsidy dispute with the EU and remove tariffs on wine whisky and other products if Airbus repays billions of dollars in aid to European governments sources told Reuters news agency [File Charles Pla

This latest WTO ruling follows a 2019 decision allowing the United States to impose retaliatory tariffs of approximately $7.5 billion annually on various European Union goods.

President Donald Trump told reporters on Thursday that he would "strike very hard" if the European Union imposed tariffs on United States goods after winning the WTO ruling earlier this week.

"If they strike back, then we'll strike much harder", Trump told reporters Thursday. But Brussels has bristled at the truce offer and instead is plotting to retaliate with £3.11bn worth of tariffs on imports from the US. "They don't want to do anything, I can tell you that". The European Union has long demanded government subsidies for the U.S. aircraft manufacturer Boeing It was unfair.

As a goodwill gesture, the associations called on the United States to suspend additional tariffs imposed on European products as part of the Airbus trade dispute and on the EU to refrain from imposing additional tariffs on USA products, while negotiations are under way.

-The U.S. has offered to settle a long-running dispute with the EU over aircraft subsidies if plane maker Airbus SE repays European governments billions of dollars received in aid, Reuters reports, citing unnamed sources.

Le Maire said he plans to discuss the matter with German Economy Minister Peter Altmaier later Friday.

"It's a major political choice", he said. "Do we remain powerless against USA sanctions or are we capable of showing our strength as the law permits?"

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The WTO determined that the amount was "commensurate with the degree and nature of the adverse effects determined to exist" from U.S. support for Boeing considered to be in violation of worldwide trade rules, according to the 121-page arbitrator's report.

In response to the situation, as a gesture of goodwill, the EU-based coalition of associations is seeking the U.S. to suspend additional tariffs imposed on European products while negotiations are ongoing.

Jamieson Greer, former chief of staff to U.S. trade chief Robert Lighthizer, said any deal must involve some form of subsidy payback by Airbus. "Otherwise, we will be forced to defend our interests and respond in a proportionate way".

This week the World Trade Organization allows the EU to respond to the charges imposed by Washington following a similar ruling last October, under which the United States won the right tariffs .5 7.5 billion EU goods, This affected aircraft parts and luxury goods based on the European Government's objections to the rival space team Airbus.

Lighthizer previously said he's seeking two things: a pledge from Europe to end its aircraft subsidies and for Airbus to repay the subsidies it received from France, Germany, Spain and the United Kingdom.

European industry officials argue that the USA demands are too heavy-handed and the pandemic has complicated the prospects for a deal.

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