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On 2 October 2019, the World Trade Organization (WTO) authorized the United States to apply sanctions against Europe. Some European countries are accused by the United States of paying illegal subsidies to Airbus.
Geneva gives, hence, Washington the green light to impose 7.5 billion USD of customs duties on imports from Europe. This decision will have an economic impact on countries such as France, Germany, Spain and the United Kingdom.
It is starting from 18 October 2019 that the new customs duties will be applied:
| Countries involved | Taxed products | Taxation rate |
|---|---|---|
Europe | Planes, cheese | 10% |
Germany | Machines, knives, coffee | 25% |
France / Spain | Wine, | 25% |
Spain | Olive oil | 25% |
United States | Whisky, sheets, blankets | 25% |
In six months, Europe may take revenge on the United States that it accuses of granting illegal subsidies to Boeing. The WTO will define the amount of sanctions that the old continent will be entitled to impose on the United States.
The complaints filed to the WTO date back to 2004. At that time, Washington accused the European Union of awarding preferential loans to Airbus causing an estimated 7.5 billion USD in damages to the United States. In response to these accusations, the European Union, in turn, unveils a report concerning 19.1 billion USD of illegal subsidies granted to Boeing by the American government.
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