Olive oil, butter and essential oils are among a list of EU goods that the USA has threatened to impose US$11bn worth of tariffs on in a long-running dispute over the EU’s subsidy of European aerospace corporation Airbus.
“This case has been in litigation for 14 years and the time has come for action,” added US Trade Representative Robert Lighthizer.
The USTR’s 14-page list of EU goods that could attract tariffs, include several symbolic targets such as “French cheese”, wine, champagne, olive oil and seafood such as oysters, the Guardian newspaper wrote.
The dispute dates back to 2004, when the USA brought a challenge to the WTO over EU subsidies of Airbus. Both sides have since argued their case at the WTO, which is expected to rule on the size of any countermeasures in a few months.
According to Reuters, EU officials had also started to prepare retaliatory measures in relation to US subsidies to American aerospace company Boeing.
According to Eurostat, 35% of EU olive oil exports with an estimated value of US$339M went to the USA in the first fiscal quarter of 2019. Spain exported 35,323 tonnes, Italy exported 30,898 tonnes, while Portugal and Greece exported 1,410 tonnes and 3,506 tonnes, respectively.
Posted by: Guilherme R. Bezzarro
Source: Oils & Fats Internacional