"It is now important to find a negotiated solution as quickly as possible"
The ongoing subsidy dispute between the EU and the USA is also burdening companies in the mechanical engineering sector. A constructive dialogue is therefore needed quickly to abolish punitive tariffs.
For the authorization of EU punitive tariffs on US products by the World Trade Organization (WTO) because of illegal subsidies from the USA, says Ulrich Ackermann, Head of the Foreign Trade Department at the VDMA:
"It is good that the long-awaited WTO arbitration ruling on the issue of illegal US state aid to the aircraft manufacturer Boeing has now been made. The EU is now allowed to impose punitive tariffs of almost USD 4 billion per year on US products. This means that there is now "equality of arms" in the transatlantic dispute over aircraft subsidies. Last year, the USA had already been awarded WTO punitive tariffs of USD 7.5 billion per year on EU products because of illegal subsidies for Airbus.
"This means that there is now "equality of arms" in the transatlantic dispute over aircraft subsidies."
This ongoing dispute also affects companies in the mechanical engineering sector that have nothing to do with the original subsidies to Airbus or Boeing. We, therefore, call on the EU and the US Government to engage in a constructive dialogue. It is now important to find a negotiated solution as quickly as possible that will finally end the dispute over subsidies for the two aircraft manufacturers and thus also abolish and prevent punitive tariffs on mechanical engineering products in bilateral trade”.