EU Should Not Let a Tariff Resolution Option Fly-away
“A bird in the hand is worth two in the bush”
NABI Press Release – October 21, 2020
“This century old truism has real application to the present trade conflict coming to a head with the EU developing its retaliatory tariffs under the Boeing dispute and the U.S. evaluating its next steps in its Airbus dispute retaliatory tariffs,” said Robert M. Tobiassen, President, National Association of Beverage Importers. NABI urges the European Commission and the United States Trade Representative to reduce Airbus tariffs across the board by Boeing tariffs, impose no new tariffs, and focus the continuing tariffs on aircraft which are at the core of this trade war.
The EU Commission is currently consulting with the Member States on a final Boeing tariff list of goods from the United States. NABI urges the EU Commission and Member States to consider our proposal which NABI believes advances the interests of U.S. importers and the economies of the Member States. NABI urges the EU Commission to publish its list and then offer USTR that it wants an upfront percentage reduction of all of the U.S. retaliatory tariffs (except for aircraft) equaling the Boeing tariffs amount. Tariffs on EU tariff list will likely include large civil aircraft in some respect. Both the U.S. and the EU should keep their large civil aircraft tariffs in place which is at the core of this trade dispute so the Airbus countries continue to be penalized.
For all other goods, the EU will not impose Boeing tariffs and the U.S. will reduce its existing Airbus tariffs amounts (and not impose any new tariffs) on these other goods by 60 to 70 percent across the board. Stakeholders from both the U.S. and EU will still advocate for a settlement because at any point in time, either party may decide to reimpose (in the case of the US) or impose from the published list (in the case of the EU). “This is the 'Sword of Damocles’ held over each party’s head” said Tobiassen.
NABI is a nation-wide trade association representing importers of wine, distilled spirits, beer, malt beverages, cider, and mead since 1935. NABI is the “eyes, ears, and voice” for these importers in the Nation’s Capital.
For further information, please contact NABI at (202) 393-6224 or email@example.com