NABI Press Release – October 13, 2020
Opportunity for USTR and EU Trade Commissioner to Negotiate without Sword of Damocles of Tariffs
“Now that the battle lines are drawn and the strength of each other’s armaments is known,” said
Robert M. Tobiassen, President, National Association of Beverage Importers, “NABI urges the
United States Trade Representative (USTR) and the Trade Commissioner of the European Union
to agree to a 180-day truce for real settlement negotiations to move forward and conclude
successfully.”
Today, the World Trade Organization (WTO) made public the Arbitrator Report in the Boeing
dispute which authorizes the European Union (EU) to impose retaliatory tariffs on United States
(U.S.) goods exported to the EU covering nearly $4 billion in volume of trade value. As to be
expected both USTR and the European Commission issued press releases that reveal both tough
and firm stances as well as flexible and positive stances. USTR Ambassador Robert Lighthizer
disagrees that the EU has may impose tariffs because the US is now in compliance in the Boeing
matter. He reiterated that USTR would respond in kind to any EU retaliatory tariffs echoing the
statements in the previous notices that USTR would act “immediately” if the EU imposed such
tariffs. Similarly, Trade Commissioner Valdis Dombrovskis stated if necessary “we will be
forced to exercise our rights and impose similar tariffs.”
“Yet there is some hope here in parsing through the press releases,” said Tobiassen “because
both sides offered reconciling comments.” USTR said the US has shown “restraint” by not
imposing tariffs on the entire $7.5 billion and the U.S. is determined to find a solution to the civil
aircraft subsidies that would “restore fair competition and a level playing field to this
sector.” Significantly, no reference to additional compensation for the past economic and
business injury to Boeing was mentioned. The Trade Commissioner’s remarks too stressed that
the retaliatory tariffs “are not in the economic interest of either side, particularly as we strive to
recover from the Covid-19 recession. I have been engaging with my American counterpart,
Ambassador Lighthizer, and it is my hope that the U.S. will now drop the tariffs imposed on EU
exports last year. This would generate positive momentum both economically and politically,
and help us to find common ground in other key areas.”
NABI urges both side to agree to a 180-day truce where the EU will not impose any Boeing
tariffs and the U.S. will suspend the current Airbus tariffs for 180-days as a cooling off period
for serious settlement to commence. Both the U.S. trade law allows and USTR recent practice in
the Section 301 investigation of the French Digital Service Tax of suspending the retaliatory
tariffs for 180-days provides precedent because the parties have moved and are moving forward
as necessary to reach compliance with each of their WTO obligations. “Do not miss this
opportunity” said Tobiassen “for they do not often come along.”
For further information, please contact NABI at nabipresident@bevimporters.org
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