Massive $7.5 Billion U.S. Award From WTO in Airbus Subsidy Case – Sets Stage for Countervailing Duties Against EU…

Jumpin’ ju-ju bones – The Trump administration via U.S. Trade Rep Robert Lighthizer and Commerce Secretary Wilbur Ross won a massive $7.5 billion award as an outcome of the World Trade Organization agreeing with the U.S. against the EU and Airbus subsidies.  The WTO arbitrators decision is final and cannot be appealed.

This win sets the stage for President Trump to deploy $7.5 billion in countervailing duties against products from the EU.  Keep in mind, a final WTO ruling means the EU cannot retaliate against any WTO-authorized countermeasures.  The downstream ramifications are very significant. Think about it: at 25% the U.S. could tariff $30 billion in EU goods.

Man, talk about serendipitous timing… But first, here’s the press release from Robert Lighthizer:

Washington, D.C.–  The United States has won the largest arbitration award in World Trade Organization (WTO)  history in its dispute with the European Union over illegal subsidies to Airbus.  This follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules.

Today’s decision demonstrates that massive EU corporate welfare has cost American aerospace companies hundreds of billions of dollars in lost revenue over the nearly 15 years of litigation.

“For years, Europe has been providing massive subsidies to Airbus that have seriously injured the U.S. aerospace industry and our workers. Finally, after 15 years of litigation, the WTO has confirmed that the United States is entitled to impose countermeasures in response to the EU’s illegal subsidies,” U.S. Trade Representative Robert Lighthizer said.

“Accordingly, the United States will begin applying WTO-approved tariffs on certain EU goods beginning October 18. We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers.”

The award of $7.5 billion annually is by far the largest award in WTO history—nearly twice the largest previous award.  The Arbitrator calculated this amount based on WTO findings that EU launch aid for Airbus is causing significant lost sales of Boeing large civil aircraft, as well as impeding exports of Boeing large aircraft to the EU, Australia, China, Korea, Singapore, and UAE markets.  Under WTO rules, the Arbitrator’s decision is final and not subject to appeal.

The United States today has requested that the WTO schedule a meeting on October 14 to approve a U.S. request for authorization to take countermeasures against the EU.  Pursuant to WTO rules, the WTO will provide this authorization automatically at that meeting. The EU is not allowed to retaliate against WTO-authorized countermeasures.

The tariffs will be applied to a range of imports from EU Member States, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies.

Although USTR has the authority to apply a 100 percent tariff on affected products, at this time the tariff increases will be limited to 10 percent on large civil aircraft and 25 percent on agricultural and other products.  The U.S. has the authority to increase the tariffs at any time, or change the products affected. (read more)

Macron’s Merlot, Merkel’s Mercedes, Conte’s Chianti and Johnsons’ Johnson are all quivering.  Trump, Lighthizer and Ross can pick and choose whatever products they choose to designate the countervailing duties upon; they can mix-and match; they can shift and change; they can assign and withdraw; and there’s not a single thing the EU can do about it. Remarkable… ‘leverage‘,… oh, this could be lots of fun.

Ambassador Lighthizer has already made a list of products for the countermeasures.  Varying products with varying tariffs.  You can read the full list HERE (pdf).  Reuters has an outline on some of the products, and the responses from Europe.

WASHINGTON (Reuters) – The Trump administration slapped 25% tariffs on French wine, Italian cheese and single-malt Scotch whisky — but spared Italian wine, pasta and olive oil — in retaliation for European Union subsidies on large aircraft.

The U.S. Trade Representative’s Office released a list of hundreds of European products that will get new tariffs, including cookies, salami, butter and yogurt – but in many cases applied to only some EU countries, including German camera parts and blankets produced in the United Kingdom.

The list includes UK-made sweaters, pullovers, cashmere items and wool clothing, as well as olives from France and Spain, EU-produced pork sausage and other pork products other than ham, and German coffee. The new tariffs are to take effect as early as Oct. 18.

The U.S. Trade Representative’s Office said it would “continually re-evaluate these tariffs based on our discussions with the EU” and expects to enter talks in a bid to resolve the dispute. (more)

“He doesn’t think I’ll tax his meat pies”…

What makes this even more excellent is the timing for Brexit.  If Boris Johnson can get out of the EU without strings Trump can use these WTO-authorized tariffs to position a UK trade deal with the U.S. as a trade superhighway.  Incredibly this WTO decision plays right into the hand of President Trump’s global trade realignment.

KORUS (Korea-US) is in the books; phase one of the U.S-Japan agreement is in the books; the North American USMCA is complete – pending ratification; the EU previously agreed to purchase U.S. beef exports; and President Trump has been working on a post-Brexit UK-US bilateral trade agreement.  The timing for this WTO decision is, well, perfect.

China and the EU have devalued their currency in an effort to block the impacts from President Trump’s trade realignment and the ‘America First’ trade policy.

Because those currencies are devalued against the dollar, the resulting effect is a rising dollar value. That’s the stupid hypocrisy of global banking outlooks. They make a decision to devalue their currency, which causes the dollar value to rise, and then turn around and blame the U.S. dollar for being overvalued. The root cause of the devaluation is unaddressed in their argument.

The EU (specifically Germany and France) and China are trying to retain their global manufacturing position and offset the impact of President Trump’s tariffs by lowering the end value of their exports.  However, it’s a never ending spiral – and the U.S. consumer cannot save the world.

In the bigger picture this is why President Trump is the most transformative economic President in the last 75 years. The post-WWII Marshall Plan was set up to allow Europe and Asia to place tariffs on exported American industrial products. Those tariffs were used by the EU and Japan to rebuild their infrastructure after a devastating war. However, there was never a built in mechanism to end the tariffs…. until President Trump came along and said: “it’s over”!

By putting tariffs on foreign imports he has counterbalanced the never-ending Marshal Plan trade program and demanded renegotiation(s).  Trump’s goal is reciprocity; however, the EU and Asia, specifically China, don’t want to give up a decades-long multi-generational advantage. This is part of their fight.

No-one, ever, could take on all these interests. Think about it… The EU, Asia, World Bank, International Monetary Fund, China, Russia, U.S. Chamber of Commerce, Iran, U.S. Congress, Wall Street, the Big Club, Lobbyists, Hollywood, Corporate Media (foreign and domestic), and the ankle-biters in Never Trump…. All of these financial interests are aligned against Main Street USA and against President Trump.

Name one individual who could take them on simultaneously and still be winning, bigly.

They say he’s one man. They say they have him outnumbered. Yet somehow, as unreal as it seems, he’s the one who appears to have them surrounded.

Incredible.

Go Trump!

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This entry was posted in Auto Sector, Big Government, Brexit, Decepticons, Donald Trump, Economy, European Union, France, media bias, President Trump, Trade Deal, Uncategorized, United Kingdom (UK) and Great Britain, US dept of agriculture, US Treasury, USA, USMCA. Bookmark the permalink.

268 Responses to Massive $7.5 Billion U.S. Award From WTO in Airbus Subsidy Case – Sets Stage for Countervailing Duties Against EU…

  1. Bill Dumanch says:

    POTUS is President of Outer Space?
    Why, yes-in-deedee!
    THEY sent Pierre Oedipus and Hans Merkel-Old Europen way.
    President?
    Lighhizer.
    Think about his name…
    Sent a f****** LIGHTSABER!

    Very good, Sir.

    (Comment edited by Admin…)

    Liked by 1 person

  2. Haveaspine says:

    Imagine if he has just a little cooperation from the Dems/Rinos how much more this President can achieve! The sky is the limit.

    KAG 2020

    Liked by 6 people

    • lokiscout says:

      Or an honest review by the Press!
      Easy for us to say since we don’t have Chinese or EU reps poring money into our pockets to shill for them.

      Liked by 5 people

    • Orville R. Bacher says:

      The Demented Party and the corrupt Agencies in Washington would rather see the U.S. begging for scraps from foreigners, than admit that President Trump is EXACTLY what a U.S. President should be.
      It is going to take some mighty strong poison to rout out the Termites undermining the U.S.A from within.

      Liked by 8 people

      • oodeluph says:

        Oh, yes,indeed! The Jackass Party, arrogant, lying morons that they are, still cling to the belief that they can say whatever they like and it will be believed (e.g. that hag, Pelosi, insisting just today that Pencil Neck wasn’t “lying” when he read his egregious, libelous “transcript” in Congress!). These anarchists don’t care what it costs the nation they are supposed to be representing…as long as they get their way.
        The pathetic ankle-biters in France were whining, just today, that the EU “will retaliate”. Retaliate? How? Are they going to contravene their beloved WTO? Declare war? What, then?
        France had better hope that the third world scrum they’ve imported develops an insatiable fondness for malodorous, runny cheese and overpriced wine…oh, wait. Muslims are prohibited from drinking, aren’t they? Oops.
        President Trump is the best President ever.

        Liked by 1 person

      • Judith says:

        I say we start with the CIA and work backwards. Otherwise Presidents, Supreme Court Justices and Congressmen will be dropping like flies.

        Like

  3. willthesuevi says:

    If the swamp thought these endless attacks would distract President Trump from his job, they must now realize they seriously miscalculated.

    So much winning while they themselves are distracted. POTUS quit playing chess and is now playing the 2,500 year old game of Go.

    Liked by 1 person

  4. tiredofallthis says:

    I can understand tariffs on French wine and Italian cheese, because we can buy American wine and American cheese. But single malt scotch? WTF? I’m not aware that there is any American single malt scotch available on the market. There is no legitimate reason to put tariffs on single malt scotch, and I am going to be very unhappy if the price of single malt scotch goes up.

    Like

    • rcogburn says:

      It’ll come back down after Brexit. Meanwhile, there’s always Bourbon!

      Liked by 5 people

    • Clancy says:

      I switched to Kentucky Bourbon, it’s very tasty

      Liked by 4 people

    • dilonsfo says:

      There are a few single malt scotch whiskeys made in the USA

      https://www.fatherly.com/gear/best-american-single-malt-whiskies/

      Liked by 1 person

      • sedge2z says:

        oh good! I was worried for our “single malt” treeper.
        We’re all going to be OK.
        I think the first tariffs begin Oct 15?

        Like

    • Donzo says:

      It’s a sacrifice you’ll just have to deal with, Patriot.

      Liked by 2 people

      • tiredofallthis says:

        So what is the legitimate reason for putting tariffs on single malt scotch? Is that going to help Boeing sell more airplanes? I am happy to sacrifice for a legitimate reason, but I don’t see one here. American single malts, really? And I am not a boubon fan.

        Like

        • GrandpaM says:

          Most of the Scotts are Remainers from what I’ve read. This should nudge them in the right direction. Have you ever tried Garrison Brothers Texas Bourbon?

          Liked by 2 people

        • oodeluph says:

          The “legitimate reason” is to impose tariffs on the products each of these nations makes the most money from exporting. That’s known as “applying pressure”.
          And if this doesn’t help Britain speed up a legitimate exit from the EU, once and for all (by the end of this month, supposedly) nothing will. If they do, an immediate deal will occur between the U.S. and U.K. If not, well…Britain had better hope the tsunami of Muslims they’ve imported develops an uncontrollable, apostate thirst for hard liquor.

          Like

        • willthesuevi says:

          tired, Most likely because they put tariffs on our products or block ours completely.

          POTUS doesn’t do anything without a reason. We are all making sacrifices that will eventually make our country stronger.

          Trust me, I am getting killed right now so our country can have cheap energy. When I say killed, I may actually lose my main business. At this point, there is nothing I can do but watch it happen, so I spend time here.

          Sorry, your evening drink doesn’t even register on my radar.

          Liked by 1 person

        • sedge2z says:

          Seems like Tariffs are being applied to the largest exports.
          Maybe Boeing transports a LOT of single malt.

          Like

    • Deplorably Bonnie Blue says:

      Maybe you should hop on the Trump wagon and stop drinking. Not like it’s good for you anyway.

      Liked by 2 people

    • permiejack says:

      Parmesano Reggiano? Say it ain’t so! I hope this is resolved soon, it’s my favorite and go to cheese from the grater.

      Like

      • rnt says:

        There is domestic parmesan reggiano. I buy it and it doesn’t seem less quality than Italian products. No need to buy foreign products if one can buy good quality domestic ones. If your local store doesn’t carry domestic products then demand it.

        Like

    • DDW says:

      If it was American, it wouldn’t be Scotch.

      I’m gonna have to drink Irish Whisky or Bourbon. I don’t want to pay 25% on single malt. It’s already expensive enough.

      Like

  5. Mike T says:

    This is my first comment on this website…. so hi everyone.
    Just wanted to point out this is why the press freaked out, attacked and slandered/libeled Trump when he first promoted a nationalistic “America First” position. If you are a globalist communist who is used to making yourself fat and rich by sucking the US economy dry while gleefully claiming “…See…?! Capitalism doesn’t work!” then watching a Patriotic international businessman take the reigns of American international economic policy from the oval office would be ominous and fear-inspiring indeed.
    Thank you President Trump!!

    Liked by 26 people

  6. 4EDouglas says:

    Clearly Democrats are why we can’t have nice things..

    Liked by 5 people

  7. Kleen says:

    “and the ankle-biters in Never Trump”

    Ahahahahahaha!

    Perfect!

    Liked by 2 people

  8. Sandy says:

    Congratulations President Trump. It pays to have a smart businessman and President. Nice smile too.

    Liked by 3 people

  9. willthesuevi says:

    The meat pie caption under the above pic is great. Still laughing!

    Liked by 5 people

  10. Don L says:

    Can he use the money for the wall? Heh.

    Like

    • willthesuevi says:

      Not sure, but wouldn’t that be glorious!

      Great thought. The leftists would look like the scene towards the end of Kingsmen. All technicolor and everything. Bigly Splody heads!

      Liked by 1 person

    • snellvillebob says:

      Boeing was the most damaged party so some should go to them unless Warren wins then she will tell Boeing that they did not earn that.

      Liked by 1 person

  11. Aeyrie says:

    I love winning. Not tired yet! Go POTUS!!

    Liked by 2 people

  12. rudieddy says:

    Seriously getting S**t done….Well done.

    Liked by 2 people

  13. Herbert Kroll says:

    I don’t want to ruin the party, but the EU has a pending case at the WTO, in 2020 the WTO will decide if Boeing got financial help from the Pentagon, thereby braking WTO rules, just like the EU has done with Airbus…

    Like

  14. louche9 says:

    Johnson’s Johnson 😆

    Like

  15. Pew-Anon says:

    Say what you want about the rest of his cabinet. I know I have. But his economic cabinet is all aces. Which should probably say something to all of us about President Trump’s real priorities.

    Liked by 1 person

  16. DDW says:

    Single malt Scotch?! Rats!

    I’ll have to drink Irish or Bourbon.

    Liked by 1 person

    • Kay says:

      Diego PLC and Constellation (stocks) were down today on the news. Just FYI

      Like

    • Pew-Anon says:

      There is only one thing I absolutely will NOT buy American, and that’s French wine (sorry CA), I’m quite fond of my Burgundy and Rhone, but I’ll take one for the team and pay more/cut back as needed.

      Like

  17. Kay says:

    I’d like to thank Sundance for following not only trade news but putting it in a macro-perspective.
    I really enjoy your indepth posts on all things trade related.
    Can you do one on Iran vis-a-vis Germany/EU/Russia? How our sanctions on Iran are slowing down every country in the EU (but by how much per country NATO/non-NATO)?
    I’d be interested in your take on this. When you have time. LOL.

    Like

  18. jbrickley says:

    I do like my single malt whiskey, but I have acquired a taste for quality Kentucky Bourbon as well. Probably invented by early Scotch immigrants. MAGA!

    Like

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