The United States and European Union are edging closer to a tit-for-tat tariff w...
) and in a pair of cases dating back to 2004. It’s the largest dispute tackled by the Geneva-based WTO, which has backed some of the claims and rejected others.
2) “Actionable subsidies” cause harm or “adverse effects” to another country or its industry, but the burden of proof is higher and rules for compliance are less severe. They are only illegal if the complaining nation can prove it was harmed. Such subsidies dominated the thousands of pages of evidence and will drive any retaliation rights awarded to both sides.According to many, the lawyers and multiple expert witnesses. Costs of the cases are estimated to top $100 million.
Now WTO arbitrators must decide on mutual claims of billions of dollars of harm inflicted on each side by “actionable subsidies” in order to determine the amount of tariffs allowed.The United States seeks tariffs on EU goods with an annual trade value of $11.2 billion. The EU seeks tariffs on U.S. goods worth around $10 billion. People close to the case say the WTO is set to allow Washington to impose around $7.5 billion in tariffs. The EU will find out how much it can impose next year.
It appears too late for the DSB to do this at its upcoming meeting on Sept 30. Its next regular meeting is due on Oct. 28 but the United States could request a special meeting no earlier than 10 days after the arbitrators’ report is published.Under WTO rules, the EU cannot retaliate directly but it is expected to win permission to impose its own tariffs when its parallel case catches up in 2020.
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