Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

EU bets on Biden to resolve aircraft subsidy row

Stock MarketsDec 31, 2020 16:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Airbus logo at the entrance of the Airbus facility in Bouguenais 2/2

By Philip Blenkinsop

BRUSSELS (Reuters) -The European Union will seek a swift resolution of a 16-year battle over aircraft subsidies with U.S. President-elect Joe Biden, saying that new U.S. tariffs have damaged talks with the Trump administration.

The Commission, which coordinates trade policy for the 27-nation European Union, said on Thursday that the U.S. action had "unilaterally" disrupted ongoing negotiations about respective state subsidies for European planemaker Airbus and its U.S. rival, Boeing (NYSE:BA).

"The EU will engage with the new U.S. administration at the earliest possible moment to continue these negotiations and find a lasting solution to the dispute," it said in a statement.

The office of the U.S. Trade Representative (USTR) said on Wednesday it was adding aircraft components such as fuselages and wings, and wines and brandy from France and Germany on to a list of goods subject to tariffs, responding to what it said was unfair EU retaliation.

Both Washington and Brussels have won cases at the World Trade Organization, the former allowed to impose tariffs on $7.5 billion of EU goods and the latter extra duties on $4 billion of imports from the United States.

The USTR said the EU tariffs, imposed in November, had been distorted by basing them on trade depressed by the COVID-19 pandemic, and because Britain had been cut from the calculation even though it had applied the measures throughout 2020.

In a statement, Airbus said Europe should respond "appropriately".

"SLEDGEHAMMER" FOR FRENCH WINE

The new tariffs are part of a 16-year transatlantic battle over aircraft subsidies that both U.S. and European negotiators had recently talked about ending. They will apply from Jan. 12, eight days before Biden succeeds Trump as U.S. president.

Aircraft are already covered by U.S. tariffs, but the addition of components closes a loophole that had allowed Airbus planes assembled in Mobile, Alabama, to be sold in the United States free of tariffs. As a result, those aircraft are likely to be uncompetitive in the U.S. market.

Likewise, some alcohol from the Airbus-producing nations - France, Germany, Spain and Britain - was already subject to tariffs, and other varieties have now been added. The French wine exporters' federation called it a "sledgehammer" blow.

"We're in close contact with the European Commission and all our partners to establish the adequate response that should be given to this American decision we deem illegitimate and that comes at a time where both our economies are already badly hit but the crisis we're all experiencing," four French ministers, including finance minister Bruno Le Maire, said in a statement.

The United States is the largest market for European spirits. Share broker Jefferies estimated a 6% hit to Remy Cointreau profits, but less than 1% for Campari, Diageo (LON:DGE) and Pernod Ricard (PA:PERP).

Remy Cointreau and LVMH (PA:LVMH), which makes the world's top-selling cognac, Hennessy, had no immediate comment. Pernod Ricard declined to comment.

Britain and Spain were spared additional tariffs.

Britain said its decision to suspend retaliatory tariffs against the United States from Jan. 1, part of its new-found freedom outside the European Union, was already paying off. However, existing tariffs on some British goods such as Scotch whisky remain in place.

EU bets on Biden to resolve aircraft subsidy row
 

Related Articles

Dow Futures Up After 8 Weeks of Decline
Dow Futures Up After 8 Weeks of Decline By Investing.com - May 22, 2022

By Oliver Gray  Investing.com - U.S. stock futures moved higher in Sunday’s evening deals after major benchmark indices finished the week lower amid a broad market sell-off as...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Dirk Reynen
Dirk Reynen Dec 31, 2020 18:11
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hes a cheater and a fraud lock him up along with hunter biden... wikileaks released all the dirt on them go check it out its freeeeee
Andy st
Andy st Dec 31, 2020 17:54
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hes not president yet and looking likely he may not be
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email