Section 301 Duties Will Be Imposed on Products of the EU after WTO Ruling

Posted by Kelsay Calvaruso on 10/3/19 5:00 PM

On October 2, 2019, the World Trade Organization (WTO) decided in favor of the U.S. in the case Measures Affecting Trade in Large Civil Aircraft, authorizing the U.S. to assess tariffs on $7.5 billion of imports from the European Union (EU). 

The Office of the U.S. Trade Representative (USTR) issued a press release and posted the list of affected products, outlining additional duty of 10-25% on certain products of the European Union (EU) with an anticipated effective date of October 18, 2019.

In order for the WTO determination to be finalized, the WTO Dispute Settlement Body (DSB) has to adopt the findings, and the U.S. has requested a special meeting of the DSB on October 14, 2019, according to the USTR’s press release.

The USTR’s product list includes 15 different sections with each affecting different countries of origin and with different additional duty rates including, but not limited to, the following:

  • Section 1: Certain airplanes and other aircraft of France, Germany, Spain, and the United Kingdom at 10% additional duties;
  • Section 2: Certain whiskies and sweaters of the United Kingdom at 25% additional duties;
  • Section 3: Various coffees and tools of Germany at 25% additional duties.

Per the USTR’s notice, the final list of affected products will be published in a future Federal Register notice.

The WTO’s decision and case proceedings can be found here:

https://www.wto.org/english/news_e/news19_e/316arb_e.htm

The USTR’s press release can be found here:

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/october/us-wins-75-billion-award-airbus

The USTR’s proposed product list can be found here:

https://ustr.gov/sites/default/files/enforcement/301Investigations/EU_Large_Civil_Aircraft_Final_Product_List.pdf

Topics: EU, WTO, Section 301, European Union