Business World

Wednesday 17 July 2019

Both sides 'sinners' in US-EU trade row

Trade Commissioner Cecilia Malmstrom
Trade Commissioner Cecilia Malmstrom

Reuters

European Union Trade Commissioner Cecilia Malmstrom has signalled that she expects the US and EU to hit each other with tariffs as retaliation over illegal government aid to Airbus and Boeing.

Commissioner Malmstrom said the US is entitled to strike first by the end of the summer, and the EU would follow suit five to six months later, after the World Trade Organisation faulted both sides in 14-year-old disputes over aircraft subsidies.

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She also repeated a preference to seek a negotiated settlement with Washington.

"We are both sinners, so with that we are entitled to take action against each other," Ms Malmstrom told a conference in Brussels yesterday.

"This would be very unfortunate, of course, because even if we both have sinned, we should put our different sanctions in the freezer and say 'let's talk'."

The dispute threatens to worsen already strained EU-US relations.

Irish Independent

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