Airbus says USA sanctions on its aircraft would have no legal basis

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The World Trade Organization ruled a year ago that the European Union provided illegal subsidies to plane maker Airbus. Even the US and European Union have been negotiating since a year ago about ways to avoid tariffs that President Donald Trump has desired to inflict to reduce a trade deficit with countries like Germany. It will soon stop!'

"We've never completed tariffs on planes before", he mentioned. In the USA case a WTO decision could come in June or July this year.

The EU measures would relate to the bloc's World Trade Organization complaint over subsidies to rival Boeing.

The renewed transatlantic wrangling over aviation subsidies heightens EU-U.S. trade tensions prompted by President Donald Trump's "America First" protectionism, especially his controversial duties on foreign steel and aluminum based on national-security grounds and his threat to apply automotive levies on the same basis.

"This case has been in litigation for 14 years and the time has come for action", Lighthizer said in a statement.

It's unclear what the scope of the talks will be, after an agreement between Prime Minister Shinzo Abe and Trump in September referred to both goods and services. "Our ultimate goal is to reach an agreement with the European Union to end all WTO-inconsistent subsidies to large civil aircraft".

The United States has estimated the value of those subsidies worth $11.2 billion in trade, though the European Union has challenged that estimate.

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What Happened: Ambassadors from EU member states have reportedly approved the European Commission's negotiating mandate for trade talks with the United States to reduce industrial tariffs, Bloomberg reported April 11.

"We're still in the same tariff world that we were a year ago", said Ms Cutler.

Trade analysts say it is not uncommon for countries to present a tariff target list prior to the WTO arbitrator sets parameters. "Instead, she noticed, the Trump administration declared its intentions" with fanfare and hoo-ha" in a press release made to attract general attention. The Boeing 737 Max has been indefinitely grounded worldwide following two fatal crashes involving the aircraft just months apart that killed 346 people. "The amount of WTO authorized retaliation can only be determined by the WTO-appointed arbitrator", said the EC.

While the size of the tariffs is small compared with the hundreds of billions the US and China are taxing in their trade war, it suggests a breakdown in talks with the European Union over trade.

The list of US goods on the commission's draft retaliation list in the Boeing-aid case also includes video-game consoles, fitness equipment, casino game tables, tobacco, vodka, orange juice and a range of foods including chocolate, ketchup and frozen lobster.

"Therefore, it is not wise and fair to impose unilateral tariffs on their trade partners as a countermeasure for subsidies when it is a practitioner itself" of such a policy, he said. On the eve of the North Atlantic Treaty Organisation defence review in 2003, US Defence Secretary Donald Rumsfeld even drew a distinction between "old" and "new" Europe, with the latter perceived as more favourable to US interests.

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