WTO formally authorized US to hit EU goods with added duties

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WTO formally authorized US to hit EU goods with added duties

On Monday, the 14th of October 2019, the Geneva-based World Trade Organization, an intergovernmental entity accountable to foster the regulations of international trade between nations, had proferred a formal authoritative power to the United States to incline an additional tariff on up to $7.5 billion worth of EU imports.

In point of fact, latest WTO move came forth a week after a WTO arbitrator had ruled in favour of the United States over a decade-long Airbus Subsidy dispute between EU and US, hearing EU Commission guilty of allowing special privileges to some of the subsidies of European aerospace and defense conglomerate Airbus SE, an arch-rival of US-based Boeing Co.

In effect, the decision of WTO's dispute settlement body, comprised of the representatives of its 164 members, had cemented Washington's path to hit EU alongside Airbus producing nations such as United Kingdom, France, Spain and Germany with an additional tariff of up to $7.5 billion worth of EU imports as beforementioned.

However, alleviating some concerns linked to opening up of another front of trade war amid an already escalated Sino-US trade row rattling global financial markets for more than 16 months, US trade ambassador Dennis Shea said in a meeting in Washington earlier on Monday (October 14th), "But that can only happen if the EU genuinely terminates the benefits to Airbus from current subsidies and ensures that subsidies to Airbus cannot be revived under another name or another mechanism," adding Washington had still been looking to a negotiated solution instead of ratcheting up trade tensions amid a slowing global economy.