On April 6, 2020, the European Commission published the Regulation (EU) 2020/502 on new commercial policy measures concerning certain products originating in the US. The European Commission has given notice to the World Trade Organization (WTO) Council for Trade in Goods of its intention to suspend its obligation of equivalence under the General Agreement on Tariffs and Trade (GATT) on certain goods of US origin. If the Council does not disapprove, the application of the trade measure will be applied in two stages:
- First stage: additional ad valorem duties will apply from May 8, 2020 on import of Combined Nomenclature (CN) codes 9613.80.00 (20%) and 3926.30.00 (7%).
- Second stage: an additional ad valorem duty of 4.4% shall apply on imports of CN 9504.40.00 from February 8, 2023 or the fifth day following the date of adoption by, or the notification to, the WTO Dispute Settlement Body of a ruling that United States’ safeguard measures are inconsistent with the relevant provisions of WTO Agreement, if that is earlier.
These measure will remain in force until such time that the US withdraws its safeguard measures towards certain goods of EU origin that was made effective from February 8, 2020.