WTO says EU can slap tariffs on $4 billion in US goods over Boeing aid

GENEVA: The World Trade Organization ruled Tuesday that the European Union could impose tariffs worth $4.0 billion on US imports in retaliation for illegal American aid to plane maker Boeing, a year after the EU was sanctioned for its support of Airbus. The decision was the latest development in a 16-year saga between Washington and Brussels over support for their leading civil aircraft manufacturers.

The WTO determined that that amount was "commensurate with the degree and nature of the adverse effects determined to exist" from US support for Boeing considered to be in violation of international trade rules, according to the 121-page arbitrator's report.

According to a list of targets seen by AFP, the European Union is expected to impose tariffs on aircraft made in the United States, along with tractors, sweet potatoes, peanuts, frozen orange juice, tobacco, ketchup and Pacific salmon.

The EU's top trade official signalled a preference for avoiding new tariffs, calling instead on Washington to withdraw US levies on European goods after the WTO last year authorised a record $7.5 billion in US sanctions against European goods.

Washington then imposed punitive tariffs of 25 percent on EU products such as wine, cheese and olive oil. A 10-percent tariff on Airbus planes was hiked to 15 percent in March.

"I have made it clear that my strong preference is for a negotiated settlement with the US, avoiding harmful rounds of measures and countermeasures," EU executive vice president Valdis Dombrovskis said.