The World Trade Organization (WTO) on September 30 will announce a decision on the dispute between the US and the European Union, the consideration of which dragged on for 15 years. If Washington wins the case, it will be able to impose fully legally duties on European goods worth billions of dollars, writes CNBC.
The US is demanding compensation for unfair, in their opinion, subsidies that the European authorities for many years provided to its aircraft manufacturer Airbus.
The United States claimed to want to impose duties of 100 percent on European imports of $ 11.2 billion. However, later sources in the government said that in case of victory, the restrictive measures will affect a smaller amount-about 7.5 billion. The list of products that may fall under the restrictions is already known. Choose from it will be after the WTO will announce its decision.
Earlier this month, several sources said that the WTO is ready to support Washington in a trade dispute. After that, Airbus shares fell sharply.
Meanwhile, the EU authorities are also conducting a case in the WTO against the US, in which they demand to recognize illegal preferences granted to Boeing. According to preliminary estimates, it will take about nine months to complete. The EU has also compiled a list of American goods, which in case of victory will impose duties.
According to experts, the new restrictive measures could lead to the beginning of a full-fledged trade war between the US and the European Union. Currently, the US has duties on European steel and aluminum, and the EU has duties on US goods worth $ 2.8 billion. In November, the US will consider imposing duties on the European automotive industry. The EU authorities have already promised that they will not leave these actions unanswered.
A trade war with Europe could be far more dangerous for the US than a conflict with China. It will directly affect the power of the United States in the world and, as noted by Professor at Johns Hopkins University (USA) Eric Jones, can negate all the preferences that have received American business since the Second World War.